P&C BPO Moves from Claims Management to Comprehensive Policy Servicing

by Charles Juniper

The largest segment of the Property & Casualty (P&C) Insurance BPO market is claims management. However, with this segment showing slow growth in the mature U.S. and U.K. markets, opportunities are emerging for BPO providers to enhance their position within policy acquisition & administration and comprehensive policy servicing segments.

NelsonHall's latest insurance BPO study 'Targeting P&C Insurance BPO' looks at the changing shape of the global P&C BPO market, identifying emerging opportunities in this market.
The report is global in scope and focuses on the BPO activities associated with property and casualty (P&C) products such as home, auto, flood, pet etc., and commercial general insurance and more specialized areas such as marine, aviation and transportation. The report focuses on BPO activities performed on behalf of product originators such as insurance companies and multi-line financial services organizations, reinsurers, brokers, self-insured organizations and organisations offering insurance products underwritten by a regulated provider ('white labeling') and focuses on BPO activities associated with P&C claims management, and policy processing including inbound voice based activities involved in policy acquisition and customer service.
Findings from the study include:
  • Claims management in the mature geographic markets has traditionally been dominated by P&C BPO specialists
  • However, general BPO providers have established a leadership position in the policy acquisition & administration and comprehensive policy servicing segments
  • There are opportunities for BPO vendors to support U.S. and European insurers' entry into emerging market geographies
  • Levels of offshoring will increase around policy administration, acquisition and some aspects of claims management.
  • With the growth of the comprehensive policy servicing segment, BPO providers are likely to assume the 'prime contractor' role with P&C BPO specialists acting as subcontractors
  • Some consolidation is likely among P&C BPO specialists.
As well as describing how the P&C BPO market is evolving, the study also looks at:
  • Buy-side requirements
  • Market size and growth
  • Vendor offerings and targeting
  • Vendor market shares
  • Challenges and critical success factors
The study is published within NelsonHall's Insurance Sourcing program, a rich source of expertise and insight into insurance BPO markets. To find out more, contact Paul Connolly.

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