Introduction

The global insurance BPO market has grown steadily over the last three years to reach ~US$2.7 billion. With more number of new signings taking place over the last two to three years, commercial insurers and reinsurers are also looking at the BPO segment to further increase the efficiency and effectiveness of their operations. Beyond United Kingdom and United States, Asia Pacific is also witnessing high levels of activity. The scope of BPO relationships is also expanding beyond transactional activities into more complex judgment-intensive work such as actuarial, underwriting, and analytics.

Scope and Methodology

In this research, we analyze the global insurance BPO service provider landscape. We focus on the:

• Relative positioning of 20 service providers on the Everest Group PEAK Matrix for insurance BPO
• Service provider market success
• Service provider capability advancements
• Emerging service provider trends
• Implications for insurers and service providers

Content

This report will help key stakeholders (insurers, service providers, and service enablers) identify market Leaders, Major Contenders, and Emerging Players in the insurance BPO market and compare capabilities of market leaders vis-à-vis others. At the same time, it will also highlight the key emerging trends in the insurance BPO market and the key implications for buyers and service providers. The report provides detailed analysis of the service provider market shares, relative position on Everest Group PEAK Matrix, service provider capability assessment, and emerging service provider trends. Some of the findings of this report are:

• Everest Group classifies 20 insurance BPO service providers on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders, and Emerging Players. The PEAK Matrix is a framework to assess the absolute market success and overall capability of service providers
• The 2014 insurance BPO PEAK Matrix has four Leaders (CSC, EXL, TCS, and WNS), followed by twelve Major Contenders (Accenture, Capita, Cognizant, Dell, Genpact, HCL, Infosys, MphasiS, Serco, Sutherland Global Services, Wipro, and Xchanging), and four Emerging Players (IGATE, NIIT Technologies, Syntel, and Tech Mahindra)
• Cognizant, CSC, Genpact, Infosys, and Sutherland Global Services emerged as the “Star Performers”
• Capita has the largest market share by revenue, while Xchanging has the largest number of clients
• Capita and EXL have the largest scale by the number of FTEs of insurance-specific BPO. The top quartile performers by scale, typically, sign larger contracts than the other service providers
• Cognizant, CSC, Genpact, Infosys, and TCS have the strongest technology solution suite for insurance BPO, with investments in augmentation and platform-based solutions
• As the modern consumer becomes more comfortable with digital marketing channels, insurers are looking to service providers to help them meet consumer expectations
• While standard lines within commercial insurance have driven adoption so far, the growth is being witnessed from specialty lines. Service providers have started building their capabilities in this segment

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.