Insurance BPO Services Market Outlook - 2030
Insurance business process outsourcing is the process by which companies outsource most of their backend office tasks to third-party service providers such as bookkeeping, data entry, and accounting. Insurance business process outsourcing is seen as a sustainable and beneficial option for companies that find it difficult to hire experienced personnel and manage in-house departments. Growing adoption of cloud-based solutions, increased demand for cost-effective operations, and the need for organizations to standardize business processes are expected to drive the insurance business process outsourcing (BPO) market during the forecast period.
The global insurance BPO services market is segmented on the basis of type, enterprise size, application, and region, industry vertical and region. Based on type, the market is divided into operation, marketing, administration, asset management, claims management, others. In terms of Enterprise Size, the market is categorized into small & medium enterprises, large enterprises. On the basis of application, the market is divided into BFSI, manufacturing, healthcare, telecom, others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key players operating in the global insurance BPO services industry include Genpact, EXL services, Cognizant, Dell Technologies, WNS (Holdings) Ltd, Accenture, Xerox Corporation, HCL Technologies, Capita, Invensis Technologies, and Wipro. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global insurance BPO services market.
COVID-19 Scenario Analysis
- Rise in COVID-19 cases around the world is causing an economic slowdown. This pandemic has had a significant impact on developed countries. Globally, majority of manufacturing and production of goods were indefinitely postponed and suffered loss as a result of partial or total lockdown. This, in turn, is expected to have an indirect impact on the global insurance business process outsourcing (BPO) market in the coming years.
- Furthermore, low cash flows are expected as a result of lack of industrial activity, which will have a negative impact on project funding. Companies, on the other hand, are collaborating with technology behemoths to develop industrial digitalization technologies in order to minimize the negative effects of the COVID-19 pandemic on the supply chain and their businesses.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Increasing importance of insurance BPO service providers and rising trends in the contract values of insurance BPO providers are driving the growth of the market. However, data security and privacy concerns are expected to hamper the growth of the market. Contrarily, rise in adoption of cloud-based solutions & increasing demand for specialized solutions by BPOs can be seen as an opportunity for the insurance BPO market.
The Insurance BPO Services Market Trends Are as Follows:
Trends in Contract Values of Insurance BPO Providers
Insurance BPO contracts are smaller in size and based on the labor arbitrage benefits gained by shifting work emerging economies and other lower-cost locations. Due of its low-cost destinations, Asia-Pacific is gaining popularity and contract sizes are shrinking and increasing tremendously in this region. The contract size is also shrinking due to the currency's depreciation in comparison to the USD and EUR. However, the Americas and EMEA have maintained their market share in the insurance BPO market over the years.
Increasing Importance of Insurance BPO Service Providers
Dozens of new regulations in the U.S., Europe, and other parts of the world have raised the cost of regulatory compliance for insurers. In addition, pandemic conditions have increased the likelihood of fraud and insurers are looking for better solutions. Digital adoption in the insurance industry for claim management and other services is increasing the importance of outsourcing services. Non-core services, such as data mining, to derive inferences from client data are driving insurers of all sizes to use BPO services. Therefore, increasing importance of insurance BPO service providers is driving the market growth.
Key Benefits of The Report
- This study presents analytical depiction of the insurance BPO services market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the insurance BPO services market share.
- The current market is quantitatively analyzed to highlight the insurance BPO services market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the insurance BPO services market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the insurance BPO services market.
Questions Answered in Insurance BPO Services Market Research Report
- Which are the leading players active in the insurance BPO services size?
- What are the detailed impacts of COVID-19 on the insurance BPO services market analysis?
- What current trends will influence the insurance BPO services market in the next few years?
- What are the driving factors, restraints, and opportunities in the insurance BPO services market?
Insurance BPO Services Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Enterprise Size |
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 By Application |
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 By Region |
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 Key Market Players | Wipro, HCL Technologies, Cognizant, Dell Technologies, Accenture, Xerox Corporation, Capita, EXL services, WNS (Holdings) Ltd, Invensis Technologies, Genpact |
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