The insurance business process outsourcing market has demonstrated remarkable expansion, climbing from $7.15 billion in 2023 to $7.76 billion in 2024, achieving a CAGR of 8.5%. This growth is fueled by the increasing need for cost-efficient operations, enhanced global connectivity, and a strong emphasis on sustainability, ESG, and digital transformation. The market is anticipated to reach $10.79 billion by 2028, with a CAGR of 8.6%, driven by emerging business models, a rise in insurance firms, a focus on improving customer experiences, and the growing significance of data analytics. Key trends include the integration of digital technologies, AI and machine learning, cloud-based services, and technological advancements.
Major Driver In The Insurance Business Process Outsourcing Market
The insurance business process outsourcing (BPO) market is poised for substantial growth, driven by the increasing insurance coverage. Insurance provides essential financial protection against potential losses or damages, leading to greater demand for these services. Insurance BPO involves outsourcing various insurance company processes to third-party providers, improving efficiency and competitiveness. The United States Census Bureau reported that health insurance coverage reached 92.1% of the population in 2022, equating to 304.0 million individuals, up from 91.7% or 300.9 million in 2021. This growth in insurance coverage is set to significantly boost the insurance BPO market.
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Insurance Business Process Outsourcing Market Competitive Landscape
Accenture plc, International Business Machines Corporation, Tata Consultancy Services Limited, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, HCL Technologies Limited, Atos SE, Wipro Limited, CGI Inc., Tech Mahindra Limited, Genpact Limited, Conduent Incorporated, Sutherland Global Services Inc., Mphasis Limited, WNS Limited, Flatworld Solutions Pvt. Ltd., EXL Service Holdings Inc., Mu Sigma Inc., Invensis Technologies Pvt. Ltd., Solartis LLC
Key Insurance Business Process Outsourcing Market Trend
Companies in the insurance business process outsourcing market are developing AI-based insurance services to enhance efficiency, reduce costs, and improve customer service. These AI-based services utilize machine learning and data analytics to optimize various insurance processes, such as underwriting, claims processing, and risk assessment. For instance, in June 2023, Expert.Ai SpA, an Italy-based software company, launched the Expert.Ai Platform for Insurance providers. This platform uses natural language processing (NLP) to power underwriting and claims solutions, enabling insurers to eliminate manual document review by extracting critical data and prioritizing submissions based on complexity, ultimately improving efficiency, accuracy, and speed throughout the insurance lifecycle.
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Insurance Business Process Outsourcing Market Segmentation
The insurance business process outsourcing market covered in this report is segmented –
1) By Type: Asset Management, Finance And Accounting Services, Customer Care Services, Marketing, Policy Administration, Other Types
2) By Enterprise Size: Large Enterprise, Small And Medium-Sized Enterprise
3) By Application: Business, Financial Services And Insurance (BFSI), Manufacturing, Healthcare, Retail, Telecom, Other Applications
By Geography:The regions covered in the insurance business process outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the insurance business process outsourcing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Insurance Business Process Outsourcing Global Market Report 2024 furnishes information about the global insurance business process outsourcing market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
