Insurance Business Process Outsourcing (BPO) Market

Market Overview: 

The global insurance business process outsourcing (BPO) market size reached US$ 6.9 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 8.9 Billion by 2028, exhibiting a growth rate (CAGR) of 4.3% during 2023-2028. The rising adoption of automation technologies such as robotic process automation and artificial intelligence, the growing emphasis on providing excellent customer experience, and the surging need to adhere with stringent regulations represent some of the key factors driving the market.

Insurance business process outsourcing (BPO) refers to the practice of outsourcing various business processes and operations of an insurance company to a third-party service provider. In this arrangement, the insurance company transfers specific functions and tasks to the outsourcing partner to perform on behalf of the company. It involves outsourcing a range of processes across different areas of the insurance value chain, including policy issuance, endorsements, underwriting support, premium calculations, policy servicing, and maintenance. Insurance BPO providers also offer customer service and support through various channels such as phone, email, and chat. They handle inquiries, policy changes, billing assistance, and general customer interactions. In addition, they assist in data entry, validation, cleansing, and management to ensure accurate and up-to-date information. As a result, these services provide cost savings, scalability, access to specialized expertise, improved efficiency, faster turnaround times, and the ability to focus on core business activities. They also allow insurance companies to leverage the capabilities and resources of external partners while maintaining control and oversight over the outsourced processes.

Insurance Business Process Outsourcing (BPO) Market Trends:

The market is primarily driven by the increasing adoption of automation technologies such as robotic process automation (RPA) and artificial intelligence (AI). These technologies help streamline processes, improve efficiency, reduce errors, and enhance customer experience. In addition, the growing emphasis on providing excellent customer experience represents another major growth-inducing factor. BPO providers are aligning their services to meet these expectations by offering multi-channel customer support, personalized interactions, and faster response times. Besides this, digital transformation is reshaping the insurance industry. BPO providers are integrating digital solutions such as online self-service portals, mobile apps, and chatbots to enhance customer engagement and streamline processes like policy issuance, claims handling, and document management. This, coupled with the surging need to comply with stringent regulations, is contributing to market growth. BPO providers assist insurance companies in navigating these regulations, ensuring compliance, and managing risks associated with data privacy, security, and customer information protection. Moreover, the market is also propelled by the escalating demand for cost-effective operations and the need to standardize business processes. Furthermore, the rising adoption of cloud-based solutions is also creating a favorable market outlook across the globe.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global insurance business process outsourcing (BPO) market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on type, enterprise size, and application.

Type Insights:

• Marketing
• Asset Management
• Claim Management
• Development
• Administration
   

The report has provided a detailed breakup and analysis of the insurance business process outsourcing (BPO) market based on the type. This includes marketing, asset management, claim management, development, and administration. According to the report, claim management represented the largest segment.

Enterprise Size Insights:

• Small and Medium-sized Enterprise
• Large Enterprise
   

A detailed breakup and analysis of the insurance business process outsourcing (BPO) market based on the enterprise size has also been provided in the report. This includes small and medium-sized enterprises and large enterprises. According to the report, small and medium-sized enterprises accounted for the largest market share.

Application Insights:

• Property and Casualty
• Life and Pension
   

A detailed breakup and analysis of the insurance business process outsourcing (BPO) market based on the application has also been provided in the report. This includes property and casualty and life and pension. According to the report, life and pension accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for insurance business process outsourcing (BPO). Some of the factors driving the North America insurance business process outsourcing (BPO) market included rapid digitization, implementation of stringent regulations, and the rising adoption of cloud solutions.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global insurance business process outsourcing (BPO) market. Detailed profiles of all major companies have been provided. Some of the companies covered include Accenture plc, Cognizant, Genpact, Infosys Limited, Invensis Technologies Pvt Ltd, Mphasis Limited, WNS Limited, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global insurance business process outsourcing (BPO) market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global insurance business process outsourcing (BPO) market?
• What is the impact of each driver, restraint, and opportunity on the global insurance business process outsourcing (BPO) market?
• What are the key regional markets?
• Which countries represent the most attractive insurance business process outsourcing (BPO) market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the insurance business process outsourcing (BPO) market?
• What is the breakup of the market based on the enterprise size?
• Which is the most attractive enterprise size in the insurance business process outsourcing (BPO) market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the insurance business process outsourcing (BPO) market?
• What is the competitive structure of the global insurance business process outsourcing (BPO) market?
• Who are the key players/companies in the global insurance business process outsourcing (BPO) market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the insurance business process outsourcing (BPO) market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global insurance business process outsourcing (BPO) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the insurance business process outsourcing (BPO) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.