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Global Insurance BPO Services Market Size and Share Analysis 2023-2028
The Insurance BPO Services Industry is projected to experience substantial growth from USD 24.45 billion in 2022 to USD 40.29 billion by 2028, with a compound annual growth rate (CAGR) of 8.7% during the forecast period (2023-2028).
Insurance companies have the option to outsource various back-office tasks, such as policy checking, COI processing, claims management, and policy administration, to third-party service providers known as insurance BPO companies.
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USD 24.5 billion in 2021
Services, Insurance Type, and Geography
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The COVID-19 pandemic has had a complex and multi-faceted impact on the BPO industry. Many BPO companies are still implementing changes to adapt to the effects of the pandemic. Fortunately, the BPO industry has the advantage of being able to operate digitally, allowing companies to continue working with minimal health and safety risks for employees. BPO companies have implemented several technological and digital changes to ensure smooth operations in a virtual environment.
Insurance BPO is a subset of the BFSI (Banking, Financial Services, and Insurance) industry. In recent years, the insurance industry has witnessed an increase in outsourcing complex business operations, a trend expected to continue between 2022 and 2027. The insurance BPO sector has experienced significant growth due to growing customer demand and increased digital adoption, which allows for efficient management of business operations. By leveraging business process outsourcing (BPO), insurance companies have successfully reduced operating expenses while streamlining their back-office operations.
Digital insurance BPO services have gained traction as insurers recognize the importance of digital enablement and the need to reduce R&D expenditures for non-core but critical operations. This approach enables insurance companies to effectively address growing competition and maintain long-term sustainability in the market.
The market is segmented based on various factors, including services, insurance type, and geography.
Segmentation by Services
Customer Care Services (Claims Management Services)
Finance and Accounting Services
Human Resource Outsourcing Services
Other Services (IT Services etc.)
Segmentation by Insurance Type
Property and Casualty Insurance Provider
Life and Annuity Insurance Provider
Segmentation by Geography
North America – United States, Canada
Europe – United Kingdom, Germany, France, and Rest of Europe
Asia-Pacific – China, Japan, India, and Rest of Asia-Pacific
Latin America – Brazil, Mexico, and Rest of Latin America
Middle East and Africa
The primary driving force behind outsourcing agreements in the insurance and insurance support sectors is technology. Insurance companies understand the importance of engaging consumers through multiple channels and establishing a robust digital presence. Consequently, many businesses are investing in digital platforms to attract new clients and retain existing ones across various markets and product lines. This digital transformation enhances customers’ purchasing experiences and improves product transparency.
Industry sources reveal that insurers are making significant investments in data analytics, cloud computing, mobile technology, and social business across regions such as Europe, the Middle East & Africa, and Asia-Pacific. These investments aim to enhance underwriting processes, improve risk management, reduce fraud, and develop more effective market segmentation strategies. Additionally, technology solutions assist insurance companies in optimizing their operations, enhancing internal communication and collaboration, increasing profitability, and differentiating themselves from competitors.
The London insurance business process outsourcing (BPO) market is experiencing growth due to insurance companies outsourcing back-office operations to BPO firms, thereby achieving cost reduction.
To illustrate, Cogneesol, an insurance industry back-office service provider based in London, offers services such as insurance proposal generation, data entry, insurance policy checking, and insurance claim management. These services effectively reduce operating expenses for insurance firms, boost profits, and ensure compliance with legal requirements.
The emergence of autonomous vehicles in London has led to the implementation of the Automated and Electric Vehicles Act, which mandates automated car insurance. This development indicates the growing use of driverless cars, which is expected to expand the size of the London insurance market. Consequently, this presents a favorable opportunity for players in the London insurance BPO market.
The report provides an overview of insurance BPO service providers operating on a global scale as well as within specific countries. It offers comprehensive profiles of these companies, highlighting their range of services, utilization of digital technology, regulatory frameworks, geographical locations, financial performance, and recent developments. Among the notable market leaders in this industry are Infosys, DXC Technology, WNS Global Services, Wipro, and Capita, among others.
Key companies profiled in this report include WNS, Infosys, Mphasis, Tata Consultancy Services, Wipro, Cogneesol, HGS, Corporation Service Company, Capgemini, Capita, Dxc Technology, EXL, Genpact, Optum Inc., Accenture, Cognizant.
Recent Industry Developments
In March 2023, Hinduja Global Solutions Ltd (HGS), a prominent provider of solutions in digital consumer experience (CX), business process management (BPM), and digital media services, announced the successful acquisition of TekLink International Inc. The acquisition involved obtaining a 100% stake in TekLink International Inc. at a value of USD 58.8 million.
In February 2023, Tata Consultancy Services (TCS) made an announcement regarding the expansion of its longstanding partnership with Phoenix Group, the largest long-term savings and retirement provider in the UK. The objective of this expansion is to digitally transform Phoenix Group’s ReAssure business, utilizing the TCS BaNCS platform.
Key Questions Answered
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