BPO in the European Insurance Market
Celent predicts the core European insurance BPO market will expand at a CAGR of 14% over the next five years.
The core insurance business process outsourcing (BPO) market in Europe is sizable. Celent estimates the market at €1.4 billion for 2006 and that it will grow to €2.8 billion in 2011, according to the Celent report, .
Most insurers with BPO in place are looking to exand their efforts and many are following more sophisticated BPO strategies. An increasing number of insurance companies are using BPO to meet a diverse set of objectives rather than cost savings alone. The report examines these trends, summarises current insurance BPO activity, analysing BPO deals by insurer type, insurer size, and business processes covered.
"There are continued cost pressures on insurers and increasingly, sourcing strategies feature as standard items on boardroom agendas to be able to address this challenge," says senior analyst Catherine Stagg-Macey, author of the report. "Companies take different approaches to BPO which typically reflect the overall level of acceptance of the BPO, and the organisation's strategic objective. But we are increasingly seeing more sophisticated buyers, especially in the UK."
Stagg-Macey went on to comment that the uncertainty about VAT will dampen activity levels. "Our deal data shows that deals in the in the €5 million to €10 million category are the ones most vulnerable to this uncertainty."
The report is based on deal-level data supplied by 17 BPO providers active in Europe, representing a total of 160 insurance BPO deals. Participating providers are Accenture, Capita, Computer Sciences Corporation, EDS, Exl Services, Genpact,HCL Technologies, Liberata, Mphasis, Percana, Innovation Group, TCS, Unisys, Vertex, Wipro, WNS, and Xansa.
The aim of the report is to provide an overview into this market, to discuss some of the issues and areas of growth, and to provide analysis on overall deal trends.
The 30-page report contains 12 figures and 4 tables. A table of contents is available online.