What Has Been the Growth of the Insurance Business Process Outsourcing Market So Far?
The insurance business process outsourcing market has seen considerable growth due to a variety of factors.
• The insurance business process outsourcing market has seen strong growth in recent years. It will grow from $7.76 billion in 2024 to $8.43 billion in 2025, at a CAGR of 8.7%.
The growth is attributed to the demand for cost-effective operations, increased global connectivity, sustainability efforts, and digital transformation across industries.
How Will the Insurance Business Process Outsourcing Market?
The insurance business process outsourcing market is expected to maintain its strong growth trajectory in upcoming years.
• The insurance business process outsourcing market is projected to experience strong growth, reaching $11.7 billion by 2029 with a CAGR of 8.5%.
This growth is driven by new business models, a rise in insurance companies, a focus on improving customer experiences, and a growing emphasis on data analytics. Key trends include increased digital technology adoption, AI and machine learning integration, the rise of cloud services, and technological advancements.
Which Factors Are Boosting Growth In The Insurance Business Process Outsourcing Market?
The rising growth in insurance coverage is expected to support the insurance business process outsourcing (BPO) market. Insurance coverage helps individuals manage potential losses and risks by transferring them to insurance providers in exchange for premiums. Insurance BPO involves outsourcing various functions to third-party service providers, improving efficiency and competitiveness. According to the U.S. Census Bureau, 92.1% of Americans were insured in 2022, an increase from 91.7% in 2021. This rise in insurance coverage is driving the growth of the insurance BPO market.
What Key Areas Define The Segmentation Of The Global Insurance Business Process Outsourcing Market?
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
Subsegments:
1) By Asset Management: Portfolio Management, Investment Strategy Services, Fund Accounting, Risk And Compliance Management
2) By Finance And Accounting Services: Billing And Invoicing, Claims Processing, Financial Reporting And Analysis, Tax And Compliance Services
3) By Customer Care Services: Call Center Operations, Claims Support, Policyholder Services, Helpdesk And Assistance Services
4) By Marketing: Digital Marketing, Campaign Management, Lead Generation And Sales Support, Market Research And Analytics
5) By Policy Administration: Policy Issuance and Renewal, Underwriting Support, Risk Assessment, Claims Management
6) By Other Types: IT Support Services, Human Resources Management, Data Management and Analytics, Legal and Compliance Services
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What New Trends Are Influencing The Insurance Business Process Outsourcing Market?
Leading corporations in the insurance business process outsourcing markets are advancing AI-based insurance services to improve efficiency, reduce expenses, and augment customer service. These AI-based services utilize technologies such as machine learning and data analytics to bolster various areas in the insurance industry including underwriting, claims processing, and risk assessment. For example, in June 2023, Expert.Ai SpA, a software company based in Italy, rolled out the Expert.Ai Platform for Insurance providers, designed to enhance underwriting and claims solutions using natural language processing (NLP). This platform allows insurers to do away with documents from review cycles, derive necessary data, and rank submissions or claims for faster review or allocation to seasoned adjusters based on their complexity. It negates the requirement for manual document review by auto-extracting crucial data, arranging submissions and claims in order of complexity for review, and giving summarised insights for quicker decision making. The Expert.ai Platform for Insurance, which streamlines repetitive tasks and enables underwriters and claims processors to focus on more significant activities, is set to improve efficiency, accuracy, and speed throughout the entire insurance lifecycle.
Who Are the Key Players In The Insurance Business Process Outsourcing Market?
Major companies operating in the insurance business process outsourcing market are:
• 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
What Is The Most Dominant Region In The Insurance Business Process Outsourcing Market?
North America was the largest region in the insurance business process outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance business process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
