by: Sarah Joson
Thursday, December 11, 2014 |
According to the report “Global Insurance BPO Market 2014-2018” released by TechNavio, a technology and research advisory firm, the insurance business process outsourcing (BPO) market is growing at a steady pace. The market is now worth over $4.6 billion and is anticipated to grow by 5.19 percent year-over-year to $6.04 billion in 2018.
Insurance BPO is part of the banking, financial services, and insurance BPO segment, and outsourcing providers have been seen carrying out support services for some of the renowned financial firms all over the world.
BPO providers help insurance companies administer and manage different processes that may include back office operations, which are in the line of human resources as well as finance and accounting. It could also consist of front office support like call center work based on the needs and metrics required by the client. The report also discovered that insurance companies are beginning to outsource more complex processes such as actuarial analysis, underwriting, and analytics support.
Outsourcing is gaining traction in the insurance market because firms are looking for ways to reduce costs and turnaround time, easier ways to comply with the stipulated regulations, and to standardize processes while reinforcing the value of their end products.
However, the study cited challenges that could hamper the growth of the market. First, data security is unquestionably an issue because of the types of confidential information transferred from provider to client. High attrition rate is likewise a challenge.
The report divided the BPO services for global insurance into two major segments: property and casualty, and life and pension. These are plotted against key geographical regions in the market.
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