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Gloabl Insurance BPO Market 2012
1. Global Insurance BPO Market 2012
Indian Players TCS, WNS, EXL Service,
Genpact, Infosys dominate the
market
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
2. Global Insurance BPO Market 2012
The global insurance BPO market has been valued at US$2 billion by the end of 2012.
and segment grew by 17% annually. Third-party Business Process Services (BPS) in
the insurance industry currently a US$6-8 billion market growing at ~17% annually.
Post 2008 Financial crisis there had been a stable growth in the number of contracts
signed in both the Life & Pensions (L&P) and Property & Casualty (P&C) lines. In fact
the contracts almost doubled in number when compared to 2008-2009 when the
financial crisis had a severe impact on the insurance companies. BPS in insurance
rebounded with 53 new, publicly-announced contracts signed in 2010-2011.
United States and United Kingdom are the primary markets for Indian Insurance BPO
vendors, but the market is also going global and activity is picking up in other regions
of the world too. Asia Pacific showed significantly increased activity over the last one
to two years .
Insurers expect BPO as a key tool to cut costs, improve operations, and manage
regulations. Service providers are differentiating their offerings through better
technology, strong delivery capabilities, and the ability to serve niche segments.
Source: Everest Group. 1. https://research.everestgrp.com/Product/11922 ; 2. https://research.everestgrp.com/Product/11946
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
3. Everest Group Performance | Experience | Ability |
Knowledge (PEAK) Matrix
The 2012 insurance BPO PEAK Matrix Leaders control 60% of the overall
has three: insurance BPO market in revenue
Leaders (EXL Service, TCS, and terms with healthy growth rate.
WNS) EXL Service is dominant player in the
Major Contenders (Genpact, HCL, U.S. BPO insurance market.
Infosys, and Wipro) TCS dominant in the UK BPO
Emerging Players (Capgemini, insurance market
Cognizant, and Serco) Source: Everest Group. https://research.everestgrp.com/Product/11946
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
4. Insurance BPO Service Providers &Offerings
Industry-specific BPO accounts for over 60% of BPO contracts in insurance, spanning
product development and business acquisition, new business, policy servicing and
reporting, and claims processing.
Leaders have a wide scale of operations and have a significant advantage over Major
Contenders and Emerging Players. Capabilities of the major players differ not only in
terms of the variance of the service offerings but also in terms of the Geographies they
are servicing successfully.
Leaders and Major Contenders have built delivery capabilities from various different
locations and this global delivery presence is a big competitive advantage when
compared to Emerging Players.
The five themes identified Everest group are Platform-based BPO offerings, increasing
focus on the U.S. closed books BPO market, inclusion of complex processes in
insurance BPO contracts, higher degree of on shoring, and regulatory and risk
management BPO.
Source: Everest Group. 1. https://research.everestgrp.com/Product/11922 ; 2. https://research.everestgrp.com/Product/11946
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
5. Insurance BPO Vendor Profile – TCS BPO
Tata Consultancy Services (TCS) has been designated as a leader in insurance BPO in the Everest
Group report – PEAK Matrix. TCS is dominant in UK market through its subsidiary Diligenta.
Diligenta, UK FSA regulated subsidiary was established in 2005 to specialize in the provision of
business process outsourcing (BPO) services for the UK life & pensions industry. In 2006,
Diligenta secured its first £486 million deal with the Phoenix Group (formerly known as the Pearl
Group). Since then, Diligenta has secured a number of new clients in the Life and Pensions sector
and today administers circa 5 million policies.
TCS has over three decades of experience, partnering with over 90 regional and global insurers to
achieve improved operational efficiencies, reduced costs and customer / partner satisfaction and
services span all insurance segments - life, healthcare, property and casualty (general insurance)
as well as annuities, pensions and retirement, and span the complete life cycle.
Recently concluded a multi-year, multi-million dollar transformation project at Phoenix Group,
the UK’s largest specialist consolidator of closed life funds that involved replacing and
decommissioning 11 major life and pension administration systems, hundreds of peripheral
systems and migrating more than four million policies and customer records, across multiple
brands and product lines into TCS BaNCS Insurance.
TCS won its second-biggest outsourcing contract worth $2.2 billion from UK based pension firm
Friends Life, based on a model wherein the company will be paid for each insurance transaction
and will add another 3.2 million policies.
Source: http://www.tcs.com/
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
6. Insurance BPO Vendor Profile – EXL Service
EXL’s insurance experience is proven by 60 leading global insurance carrier clients and the tenure
of more than 4,000 industry professionals and is dominant player in the US Insurance BPO
Market. EXL provides high quality services and better controls support to clients allowing them to
be more efficient and to better understand their customers, their markets and their risks. Clients
leverage EXL’s outsourcing, analytics, advisory and risk management capabilities.
Collaborate with clients to understand their priorities & design solutions to address insurers needs
and support them to manage claims, enhance subrogation services, improve first notice of loss,
build compliance preparedness, improve underwriting margins, optimize loss ratios, increase
customer penetration or accelerate customer reach, & help P&C, life, annuity and health insurers
become competitive.
In October 2012, EXL acquired Landacorp, a provider of software in support of clinical data
exchange in the healthcare industry and acquisition brings 15 payer clients and 50 provider
clients and Landacorp has 50 million members under management on its platforms
In October 2011, EXL acquired Trumbull Services, a specialized provider of Insurance BPO
services in the Property & Casualty (P&C) segment in the US, which has a ready-made
technology platform to offer in U.S. P&C Insurance BPO space and the insurance subrogation
BPO business in particular. In May 2010, it acquired PDMA, the maker of LifePRO, a policy
administration system in the Life Insurance BPO market deployed with 40+ insurers around the
world.
Source: www.exlservice.com
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
7. Insurance BPO Vendor Profile – WNS
WNS insurance outsourcing service offerings extend across the insurance value chain of Property
and Casualty, Life, Pensions, and Annuity. Services related to Product Development, Sales &
Distribution, Policy Administration, Claims Administration, Analytics, Finance & Accounting and
Customer Care.
With a dedicated team of over 7,500 professionals for the insurance industry, WNS manages over
40 million claims per year helping insurers streamline their claims operations. WNS recently
positioned industry 'leader' for Insurance BPO in Everest Group's Insurance BPO PEAK Matrix.
In January 2012, Australian insurance major Suncorp gave majority portion of the order worth
$220 million to WNS for end-to-end insurance outsourcing for a period of five to seven years.
WNS won a $228-million contract from UK-based Aviva in 2008 for all in-scope services related
to Aviva's life & general insurance businesses in the UK and Canada. Based on the anticipated
service requirements of these businesses, WNS estimates Master Services Agreement could
generate $1 billion in revenues over the life of the contract. WNS also benefits from a recently
signed AGS contract for approximately 580 employees with Aviva's Irish subsidiary, Hibernian.
In June 2012, WNS has acquired South Africa-based Fusion Outsourcing Services in an all cash
deal of over £10 million or $15.5 million. Fusion currently employs about 1,500 people and the
centre currently offers high-end voice services with plans to start financial, accounting and
insurance services.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
Source: www.wns.com
8. Insurance BPO Vendor Profile – Genpact
Genpact's life and annuity clients include several top-20 life/annuity companies, a top-three
reinsurer, the retirement services and insurance divisions of major financial institutions, a top-
three global broker, and efforts with LOMA and LIMRA. Genpact’s more than 14 years of global
insurance experience is supported by an extensive team of certified domain experts .
Under the seven-year agreement with Ironshore, a leading provider of specialty lines insurance,
Genpact will manage and standardize Ironshore's end-to-end middle- and back-office operations
to increase effectiveness and productivity, allowing the insurer to focus on continued growth of
their client-facing underwriting operations and further expansion into new markets.
Key Service offerings include Application to Issue (A2I) Solution, Product Development, Sales
and Marketing, Policy Administration ,Underwriting and Risk Management, Corporate Functions,
agent services, actuarial analysis, underwriting support, claims processing, etc. Key insurance
clients include AON, BUPA, Genworth Financial, Travelers, All State, Max New York Life
Insurance, etc. MajescoMastek and Genpact has strategic partnership focused on the insurance
industry
Genpact’s global insurance practice is driven by a team of professionals who hold over 2,800
insurance certifications, including LOMA, IIA, AAPA, FINRA Series 6, FINRA Series 7,
AICPCU, and actuarial exams, of which LOMA certifications are 1,200.
Genpact’s Insurance practice has 4500+ employees providing end to end services and also has
400+ specialist staff in areas including underwriting and analytics.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
Source: www.genpact.com
9. Insurance BPO Vendor Profile – Infosys BPO
Infosys BPO insurance services include: Quotations, underwriting and associated compliance
activities, Financial administration (e.g., premium accounting, A/R), Claims adjudication,
processing and review, Policyholder servicing (amendments with and without, underwriting),
Agency management, Actuarial and analytics, Documentation fulfillment.
In September 2012, Infosys BPO acquired the captive BPO unit of US-based insurance brokerage
Marsh & McLennan Companies for an undisclosed sum and would add about $10-12 million ( Rs
55-66 crore) in incremental annual revenue for Infosys BPO, would involve taking over of about
87 employees. The transaction would add at least seven group life insurance clients for Infosys
BPO.
McCamish Systems LLC, an Infosys BPO company, specializing in end-to-end, enterprise-wide
insurance and retirement business process solutions, has increased its presence in the Voluntary
Group Life Insurance business space by commencing operations in Des Moines, Iowa, USA. The
unit has 87 employees, serving seven insurers and covering more than 600,000 insured lives.
Infosys acquired McCamish Systems in an all cash deal of $38 million in December 2009.
McCamish Systems LLC signed a multi-year agreement with FaithLife Financial, a not-for-profit
financial services organization that provides life insurance, health insurance, income protection
and investment products in Canada. Phoenix Life Insurance (Hartford) has signed a multi-year
agreement with McCamish Systems for selected blocks of its life insurance products, including
conversion of data, policy administration and customer support.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
Source: www.infosys.com/
10. Insurance BPO Vendor Profile – Wipro BPO
Wipro’s insurance practice works with 35+ global insurers including many among the Top 500
organizations. Wipro customers include 4 of the top 6 P&C carriers in the world, 2 of the top 5
health insurance and service providers globally and 4 of the top Life, Annuity & Pension carriers
in the world. Wipro is uniquely positioned to provide strategic and innovative solutions based on
3000+ person-years of experience in managing ~150Mn claims transactions annually for leading
insurers.
Offerings cover the entire spectrum of the insurance value chain from Sales & Distribution, Policy
Administration, Risks & compliance and claims, straddling across Life and P&C markets and
delivered by over 6000+ dedicated resources. Wipro expertise in Business Advisory services,
solutions and Centers of excellence reflect their commitment towards building the future of
insurance. 4000+ consultants with an average experience of 10 years have delivered innovation in
products, branding, marketing and pricing strategies.
Partnerships & Alliances: Camilion Solutions, eBaoTech, OneShield, Pega Systems, Prima IBCS,
SAP, SSP. Associated Services (ITO + BPO Bundled Service) – Managing approximately 115MN
transactions annually for their customers, Wipro is ranked amongst the top 3 in terms of volumes
handled in the BPO Space.
With a client base of 140+ Health insurers and Offices spread across Atlanta - US, Monterrey -
Mexico, Curitiba -Brazil, Wroclaw - Poland, Bucharest – Romania, Chengdu & Shanghai – China,
Cebu City – Philippines, Yokohama - Japan, company is capable of providing multi-lingual
support in English, Spanish, Portuguese, German, French, Chinese, Japanese.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
Source: www.wipro.com/
11. Insurance BPO Vendor Profile – HCL Tech BPO
With the strategic acquisition of Liberata Financial Services, regulated in UK by The Financial
Services Authority (FSA), HCL has the ability to offer comprehensive end-to-end administrative
services and customer services to Life & Pensions Insurers. Key Service offerings include Agent
licensing, New business/underwriting, Policy Administration, Account Administration,
Commissions, Claims management and actuarial services.
HCL Practice Highlights: Top 5 Life & Pensions BPO service provider in UK, Platform based
BPO service provider for Life & Pensions market, Proven capability to offer actuarial services,
Dedicated Insurance Competency Center headed by Insurance experts. Gartner rates HCL’s
Insurance Outsourcing Practice as “Mature” in BPO for Life and Property & Casualty Insurance
Only company to win the “Excellence in Insurance Education” award by LOMA for the 5th
consecutive year. Maximum number of Advanced LOMA certified resources in practice. Key
certifications are LOMA (FLMI, ACS, ARA…), AICPCU (CPCU, INS), CII (London)
examinations and III-India (FIII).
HCL’s insurance practice is built on strong domain expertise with proven application and process
optimization capabilities across the Quote-to-Claim cycle. HCL’s investment in product assets,
intellectual property and dedicated Insurance Solution Development Centers, a strategic
ecosystem of partners and strong integrated business operations capabilities help insurers address
myriad of business challenges.
More than 10 clients & 8+ years experience in P&C space. FSA regulated Insurance Business Unit
in UK. 1200+ people manage more than 4.6 million policies for marquee clients.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/ Source: www.hcltech.com/