Product Type: Market Research Report
Published by: Datamonitor
Published: April 2006
Product Code: R313-15724Description Introduction
The insurance sector remains the most open financial services sectors to outsourcing at the business process level. The sector’s use of outsourcing and business process outsourcing (BPO) in particular continues to expand with health insurance and life insurance process outsourcing generating the greatest vendor opportunity.
Scope
- The market brief covers the North American and European insurance markets
- The primary focus of the brief is business process outsourcing in the life and health insurance lines of business
- The brief is backed up by extensive primary research in the insurance industry with 200 insurers interviewed across North America and Europe
Report Highlights
Overall outsourcing budget growth is slowing, but BPO continues to grow.
Healthcare policy admin and claims dominate BPO market, but remains a US opportunity.
L&P policy admin BPO continues rapid growth, but lacks take-up outside UK and US.
Reasons to Purchase
- Benefit from large scale primary research in the North American and European insurance industries by understanding you target market
- Profit from better understanding where insurers are planning to increase their spending
- Understand insurance sector outsourcing BPO attitudes and position to address industry concerns
Table of Contents - DATAMONITOR VIEW
- CATALYST
- SUMMARY
- METHODOLOGY
- ANALYSIS
- Results: life side outperforms and general insurers exercise strong underwriting discipline
- Life results are driven by investment returns rather than new sales as insurers look for growth opportunities
- General insurance sector maintains combined ratio improvement through strong underwriting discipline
- Overall outsourcing budget growth is slowing, but BPO continues to grow
- Strategy development in insurance IT: insurers move to enable growth, but keep tight rein on costs
- Overall outsourcing budgets growth slows as insurers look for proof of business case
- BPO remains key insurance services opportunity
- Healthcare policy admin and claims dominate BPO market, but remains a US opportunity
- Healthcare insurance administration services is biggest area of BPO spending in the insurance sector
- Pressure to improve operational profitability has been a significant driver of BPO
- Services to channel partners are requiring significant technology investment generating BPO opportunities
- Vendor opportunities remain focused both in terms of processes and geographic take-up
- North America will remain the primary market for healthcare/medical BPO in the foreseeable future
- The set of processes outsourced remains relatively narrow despite the maturity of the market
- L&P policy admin BPO continues rapid growth, but lacks take-up outside UK and US
- Business structures are changing as consolidators influence the market
- Transformation is key to profitable growth in market
- APPENDIX
- METHODOLOGY
- Further reading
- Ask the analyst
- List of Figures
- Figure 1: How are your IT and outsourcing budgets changing from 05 to 06?
- Figure 2: What are the benefits of business process outsourcing?
- Figure 3: What is your position towards outsourcing the following business processes?
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