PUBLISHER: The Business Research Company | PRODUCT CODE: 1539714
PUBLISHER: The Business Research Company | PRODUCT CODE: 1539714
Insurance business process outsourcing (BPO) involves contracting specific business functions to specialized service providers outside the organization. These functions typically include claims processing, policy administration, and customer support, aimed at leveraging external expertise in these areas within the insurance industry.
Asset management, finance and accounting, customer care, marketing, and policy administration are among the primary types of insurance BPO services. Asset management focuses on professionally managing investments to enhance wealth and manage risks for clients or entities. This outsourcing practice serves a range of organizations, including large enterprises and small to medium-sized businesses, across sectors such as BFSI, manufacturing, healthcare, retail, telecom, and others.
The insurance business process outsourcing market research report is one of a series of new reports from The Business Research Company that provides insurance business process outsourcing market statistics, including insurance business process outsourcing industry global market size, regional shares, competitors with an insurance business process outsourcing market share, detailed insurance business process outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the insurance business process outsourcing industry. This insurance business process outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The insurance business process outsourcing market size has grown strongly in recent years. It will grow from $7.15 billion in 2023 to $7.76 billion in 2024 at a compound annual growth rate (CAGR) of 8.5%. The growth observed in the historic period can be credited to rising demand for cost-effective operations, enhanced global connectivity, heightened emphasis on sustainability and ESG (Environmental, Social, and Governance), and the accelerating pace of digital transformation.
The insurance business process outsourcing market size is expected to see strong growth in the next few years. It will grow to $10.79 billion in 2028 at a compound annual growth rate (CAGR) of 8.6%. Anticipated growth in the upcoming period can be attributed to the emergence of new business models, a surge in the number of insurance companies, a growing focus on enhancing customer experience and satisfaction, and the increasing importance of data analytics. Key trends expected in this period include greater adoption of digital technologies, integration of AI and machine learning, the rise of cloud-based services, technological advancements, and increased utilization of AI and machine learning.
The growth in insurance coverage is projected to drive the expansion of the insurance business process outsourcing (BPO) market in the future. Insurance coverage refers to the protection against risk or liability provided by insurance services, offering financial safeguarding against potential losses or damages. This demand stems from the ability to transfer the risk of potential losses to insurance companies in exchange for premium payments. Insurance BPO involves outsourcing various business processes and functions of insurance companies to third-party service providers, offering substantial benefits such as enhanced efficiency and competitiveness. For example, as reported by the United States Census Bureau in September 2023, the insured rate and number of insured individuals increased from 2021 to 2022, with 92.1% of persons having health insurance at some point in the year, totaling 304.0 million individuals. Consequently, the rising prevalence of cybersecurity incidents contributes to the growth of the insurance business process outsourcing market.
Major players in the insurance BPO market are developing AI-driven insurance services to optimize operations, reduce costs, and elevate customer service. These services leverage artificial intelligence technologies such as machine learning and data analytics to bolster various insurance processes, including underwriting, claims processing, customer service, and risk assessment. For instance, in June 2023, Expert.Ai SpA launched the Expert.Ai Platform for Insurance, utilizing natural language processing (NLP) to empower insurers in underwriting and claims solutions. The platform streamlines document review cycles by automatically extracting critical data, prioritizing submissions or claims based on complexity, and providing summarized insights to expedite decision-making. By automating routine processes, the Expert.Ai Platform promises to enhance efficiency, accuracy, and speed throughout the insurance lifecycle, allowing underwriters and claims handlers to focus on higher-value activities.
In October 2023, Accenture plc acquired ON Service GmBH to strengthen its insurance operations capabilities and expand service offerings in Germany. This acquisition aims to support German insurers in enhancing operational resilience, driving business growth, and improving services such as sales and policy administration through efficient business process outsourcing. ON Service GmBH is a Germany-based business-to-business service company that offers business process outsourcing services.
Major companies operating in the insurance business process outsourcing market are Accenture plc, International Business Machines Corporation, Tata Consultancy Services Limited, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, HCL Technologies Limited, Atos SE, Wipro Limited, CGI Inc., Tech Mahindra Limited, Genpact Limited, Conduent Incorporated, Sutherland Global Services Inc., Mphasis Limited, WNS Limited, Flatworld Solutions Pvt. Ltd., EXL Service Holdings Inc., Mu Sigma Inc., Invensis Technologies Pvt. Ltd., Solartis LLC
North America was the largest region in the insurance business process outsourcing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance business process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the insurance business process outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The insurance business process outsourcing market includes revenues earned by entities by providing services such as policy administration, claim processing, customer service, underwriting support, data entry, and document management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Insurance Business Process Outsourcing Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on insurance business process outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for insurance business process outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The insurance business process outsourcing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.