Insurance BPOs are most likely to have exceeded the target of $690 million when work done by captive and third-party vendors is taken into the calculation. Nearly half of insurers use BPO. Insurers have made great progress in terms of BPO acceptance, with the practice having gone from being considered a risky strategy for the few to a mainstream strategic choice. In fact, insurers to a degree feel compelled to put BPO on the C-level agenda.
As insurance services mature and more high-end processes like analytics, actuaries and underwriting services move to India, the BPO industry is upbeat.
Claims and policy administration BPO is among the fastest growing BPO areas.
Procurement BPO in insurance will show the fastest growth, driven by a focus on improving efficiency in the claims fulfillment process.
India has several advantages as a leading insurance outsourcing destination. It offers low costs and is an established destination for outsourcing. Indian companies offer nearshore services and IT outsourcers can leverage existing relationships with large insurers.
The growth drivers are common to all verticals – cost saving, ability to focus on core processes of product development, innovation and marketing strategy and minimizing risk through multiple delivery centers.
For the insurance outsourcing vertical, the critical drivers are these:
- Understand the Insurance regulation and statutory documentation of various nations.
- Deregulation of insurance markets in countries like India, China and Japan.
- Availability of credible service providers.
- Minimizing risk through multiple delivery locations.
- Expanding organically and inorganically to establish a multi-location presence, to derisk client business.
- Resolve more than 85% of inquiries without handing off the caller to other administrators.