Steady As She Goes: Life and Pension Insurance BPO Maintains 8% Growth Rate–Everest Group
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
Although the growth rate is steady, the L&P insurance BPO market is witnessing numerous changes:
- Customers' expectations are changing, and demand for omni-channel customer experience is rising
- Buyers are looking for end-to-end partnerships for faster time-to-market and enhancing customer servicing
- There are constant regulatory shifts, and thus services such as regulatory reporting and risk management are more in demand
- Outsourcing is increasingly being viewed not only as a cost-saving opportunity but also as a source of business transformation
- The market is seeing an increasing emphasis on more complex and judgment-intensive work, such as analytics, risk management, actuarial and regulatory reporting
- Robotic Process Automation (RPA) has raised the potential for cost savings and efficiency and is steadily gaining traction in the industry
- Innovation is also being seen in pricing, with traditional pricing models such as FTE-based and fixed-fee models being gradually replaced by outcome-based pricing models
"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
- The market continues to be primarily concentrated in
North America and theUnited Kingdom . While theUnited Kingdom accounts for a lion's share of the market, growth is primarily being driven byNorth America . - Uncertainty around regulatory regimes continues to persist, and insurers will need to invest in flexible systems to ensure compliance and reporting.
- Discussions around the relevance of next-generation technologies--AI,
Blockchain , and IoT--in L&P insurance have intensified, and some implementations have also been initiated by insurers in partnerships with InsurTechs and technology providers. - Service providers are simultaneously strengthening capabilities around value-added services--such as RPA, digitalization, analytics, risk management, and regulatory reporting--via organic and inorganic routes.
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Read the full story at http://www.prweb.com/releases/2017/12/prweb14980843.htm
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