In 2018, we’ll see insurers bringing in more product innovations, leveraging partnerships with InsurTech firms
December 05, 2017
The global life and pensions (L&P) insurance business process outsourcing (BPO) market grew at an 8 percent compound annual growth rate in 2016, similar to 2015. Growth is expected to be at 9 to 11 percent over the next few years, according to Everest Group. This steady growth rate is buoyed by margin pressures on insurers who continue to find offshoring attractive for cost savings and is simultaneously dampened by the continuing political uncertainties in the United Kingdom, which leads the market and accounts for almost half of the global revenue.
Although the growth rate is steady, the L&P insurance BPO market is witnessing numerous changes:
“In the advanced insurance markets, premium growth has been stagnant but costs are rising, which puts considerable margin pressures on insurers. Further, for top-line revenue expansion, insurers must now cater to the evolving needs of their customer base,” said Skand Bhargava, practice director, Business Process Services, at Everest Group. “In fact, the key value propositions for major service providers in 2016 were based on modern platform offerings and augmented customer service delivery capabilities. In 2018, we’ll see insurers bringing in more product innovations, leveraging partnerships with InsurTech firms.”
These findings are explored in a recently published Everest Group report: “L&P Insurance BPO: Move or Miss—Innovation, Execution and Adoption of Digital Insurance.”
This research examines the global non-voice, third-party L&P insurance BPO market. It provides detailed analysis of market size and growth, solution characteristics, emerging trends and the service provider landscape.
***Download a complimentary 11-page abstract of the report.**
Other key findings in the report:
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
Andrea M. Riffle, Everest Group
Jennifer Fowler, Cathey Communications for Everest Group
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