L&P Insurance BPO providers offer scalable, cost-efficient digital talent and technology to help insurers remain relevant and competitive.
The Life and Pension (L&P) business process outsourcing (BPO) market has seen a consistent pace of year-on-year growth in the range of 9 to 10% since 2014. According to Everest Group, growth will accelerate in the future, jumping from a market size of US $2.3 billion in 2017 to US$3.1 billion by 2020.
“In 2019, we will see buyers in the L&P insurance BPO market increasingly partnering with service providers to leverage their technological capabilities and expertise,” said Skand Bhargava, practice director, Business Process Services, at Everest Group. “In particular, as insurers’ hurdles continue to magnify and the need to address inefficient legacy systems becomes unavoidable, buyers will be even more open to leveraging external resources for digital enablement. Thus, providers who have invested in digitally modernized and integrated platform solutions are going to have a clear advantage.”
Currently, the L&P insurance market massively lags behind other industries in adapting to the digital era; however, the following market forces are pressuring insurers to augment their front-, middle-, and back-office operations and connect these together through digital systems:
Everest Group advises L&P insurers to leverage partnerships with L&P BPO service providers to:
These findings are discussed in more detail in “Life and Pensions (L&P) Insurance BPO Annual Report 2019: Digital a Potential Game-changer but Insurers Stuck in Legacy Mode.” This report provides comprehensive coverage of the global L&P insurance BPO market, including the adoption trends across geographies and buyer size, factors impacting the market, key solution characteristics, emerging trends and the service provider landscape.
Other Key Findings:
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering 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 empowers 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.
Cost-savings, customer experience, and opportunity to steer top-line growth drive L&P insurers’ demand for next-gen technology, InsurTech partnerships
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 here.**
Other key findings in the report: