Navigating the Next Wave: Emerging Opportunities in Insurance BPS

Insurers today are navigating growing economic pressures, increasing regulatory complexities, and rapidly evolving customer expectations. In response, they are reimagining their approach to outsourcing by shifting the focus from cost savings to agility, innovation, and strategic alignment. Insurance BPS providers are adapting by embedding AI and machine learning, intelligent automation, and advanced analytics across core processes such as product development, underwriting, claims, and policy servicing. They are also integrating more closely with client ecosystems while adopting outcome-based pricing, risk-sharing arrangements, and workforce reskilling to deliver tangible business impact.

This report explores the ongoing transformation of insurance BPS from a transactional support function into a strategic growth driver and digital enabler. It highlights emerging outsourcing opportunities across processes such as new product development and distribution, underwriting, and claims processing. Additionally, it offers a framework for insurers to reassess their sourcing strategies, define evaluation criteria, and build more resilient and future-ready operations through deeper, more collaborative partnerships.