R&M Issues Study on Indian Insurance Outsourcing

October 23, 2006

Dublin-based consultants Research and Markets has announced the addition of “Insurance Outsourcing: India Gains Momentum As Offshoring Intensifies – Trends, Insights And Key Vendor Profiles” to their offering.

“The Indian offshore insurance services (BPO) industry is estimated to be worth $690 million in 2006, and is expected to grow at a CAGR of 30 percent a year up to FY2010, driven by the need to reduce costs, differentiate products in an increasingly competitive environment, and ensure regulatory compliance,” R&M noted.

“The research also expects insurance outsourcing from UK and Europe based insurance carriers to grow faster than US based insurance carriers in the next two to three years. This business will increasingly seek new, innovative business arrangements, which are hybrids between captive and third party models.”

R&M Explained that the “offshore vendor landscape is made up of:
– Captives of large insurance carriers, mainly based in the US and Europe, such as Aviva, AXA, Prudential, Allianz, Principal, etc.
– Indian offshore third party BPO vendors which include, large third party BPO vendors like Genpact, WNS, EXL Service, etc.; BPO offshoots of IT majors such as TCS, Wipro, Infosys, etc.; Mid-tier vendors – mostly large BPO vendors with a relatively small insurance presence – such as IBM Daksh, Patni BPO, HCL BPO, etc
Smaller, undifferentiated vendors.

“In the future, we will see a rising trend towards outsourcing of higher-end processes such as underwriting, actuaries and analytics to the larger third party BPO vendors, who are fast gaining capabilities in these areas,” the announcement continued. Arun Jethmalani, CEO of ValueNotes indicated that “by FY2010 a large number of Indian vendors will have evolved into mature, end-to-end service providers, competing with multinational outsourcing companies”. Players like Genpact, WNS and EXL Services, as well as BPO offshoots of IT companies like IBM, TCS, Infosys (Progeon) and Wipro will emerge as formidable global players in the next few years.

The report provides an overview of the buyer scenario and an in-depth analysis of the Indian vendor space along with profiles of major industry players. R&M said the “report is designed to help:
– Insurance companies looking to outsource/offshore
– Outsourcing consultants to evaluate and compare the offerings of vendors
– Insurance services vendors to assess their competitive environment
– Venture Capital companies looking for investment opportunities
– Researchers looking for detailed information on financial services offshoring
This study is based on secondary data as well as extensive interviews with key people at various BPOs (captive as well as third-party) in India.

Companies treated in the report include: ING, Allianz, AXA, AIG, AVIVA, Munich Re, Nippon Life Insurance, Metlife, Prudential Financial, Royal & Sun Alliance, Willis BA, Cornhill, Swiss Re, Scottish Widows, Lloyds TSB, American Annuity Group and Principal Financial

For more information visit http://www.researchandmarkets.com/reports/c43896

Was this article valuable?

Here are more articles you may enjoy.