UK and US policy admin BPO in life insurance: Industry Report

UK and US policy admin BPO in life insurance

Product Type: Market Research Report
Published by: Datamonitor
Published: August 2004
Product Code: R313-6963

Description

Introduction
Having reached $530 million in annualized revenue in 2003, the UK and US policy administration BPO market has gone through tremendous growth over the last few years and, as the market matures and vendors are starting to penetrate open block accounts, the trend looks set to continue.

Scope
The report analyses the life insurance policy administration BPO market in the UK and US
Looks at challenges to continued growth and the competitive environment
The report also provides detailed forecasts of market growth and value until 2008
Highlights
Vendors have established policy admin outsourcing as a clear cost play through its focus on closed block insurance, but will need to tackle an increasing focus on insurance growth strategies to penetrate open block, especially as the sector emerges from the recent downturn. At the end of 2003 open block represented just 6% of the market.

Reasons to Purchase
Use competitive insight to improve understanding of relative positioning in the policy administration BPO market
Improve planning process through better understanding of future growth prospects
Understand insurance outsourcing drivers and barriers to take-up to enhance sales success in the market segment

Table of Contents

TABLE OF CONTENTS

ABOUT DATAMONITOR 2

EXECUTIVE SUMMARY 7

INTRODUCTION 9

THE POLICY ADMINISTRATION PROCESS IN LIFE AND PENSIONS 10

CUSTOMER ACCEPTANCE 13

VENDOR CHALLENGES 16

Open block administration 16

Growth strategies 18

VENDOR DYNAMICS 21

Vendor overview 22

Other vendors 24

FUTURE DECODED 26

Latent market 27

SUMMARY 30

APPENDIX 31

Definitions 31

Business process outsourcing 31

Abbreviations 33

Forecasts and assumptions 33

What currencies are used? 33

How has inflation been treated? 33

Further readings 34

SPP writing team 34

Author: 34

Manager: 34

How to contact experts in your industry 35

LIST OF TABLES

Table 1: Acceptance remains at a low level, but grows rapidly after initial market defining deals 14

Table 2: Tapping into the open block insurance BPO market remains the single most significant challenge for the BPO providers, numbers refer to end 2003 17

Table 3: UK and US policy administration outsourcing growth, 2003-2008 27

Table 4: Policy administration outsourcing has nearly infinite growth potential with the current market only covering 1.7% of life and pensions policy administration spend 29

LIST OF FIGURES

Figure 1: Process breakdown of policy administration 10

Figure 2: Acceptance remains at a low level, but grows rapidly after initial market defining deals 13

Figure 3: Relative market sizes based on outsourced and addressable policy administration markets in UK and US life and pensions 15

Figure 4: Tapping into the open block insurance BPO market remains the single most significant challenge for the BPO providers, numbers refer to end 2003 17

Figure 5: Vendor positioning dynamics, July 2004 21

Figure 6: Vendor overview by geography and key differentiators 22

Figure 7: UK and US policy administration outsourcing growth, 2003-2008 26

Figure 8: Policy administration outsourcing has nearly infinite growth potential with the current market only covering 2% of life and pensions policy administration spend 28

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