Asia-Pacific Insurance BPO Market Study 2014: A Deal Analysis
Celent looks at the recent activity in business process outsourcing in the insurance sector in Asia Pacific and finds that generally Asia-Pacific is an under mature market for insurance BPO.
The insurance business has been increasingly using BPO. In the report Asia-Pacific Insurance BPO Market Study 2014: A Deal Analysis, Celent provides some context for discussion by establishing the current uses of business process outsourcing (BPO) for core insurance services in Asia-Pacific.
The deal data provided by BPO providers reflects an Asia Pacific market where deal characteristics vary according to line of business. Property & Casualty deals are predominant in smaller insurers, while multiline and Life & Annuity deals are larger in revenue and service larger clients.
Cost reduction is not a predominant driver for business process outsourcing. “Cost reduction and business process improvement are top benefits for life insurers and multiline insurers,” says Karen Monks, Analyst with Celent’s Insurance Group and coauthor of the report. “Revenue generation and business process improvement are top benefits for property and casualty insurers.”
“Asia-Pacific deals rely more on insurers’ own software at their own site as the servicing platform, although other deployment methods are also used,” says Wenli Yuan, Senior Analyst with Celent’s Asian Financial Services Group and coauthor of the report. “BPO activity is most frequently seen in the customer service, claims management, sales, and billing and payments functions.”