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Published in October 2006 * The report is sent in PDF format and will be e-mailed to you within one working day from the purchase of the report.
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% a year up to FY2010, driven by the need to reduce costs, differentiate products in an increasingly competitive environment, and ensure regulatory compliance.
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.
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. "By FY2010", says Arun Jethmalani, CEO, ValueNotes,"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.
Arpita Bedekar, analyst at ValueNotes expects "greater offshoring of high-end, higher-value services like analytics, actuaries and underwriting to push industry average billing rates upwards by more than 25 percent in the next two to three 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. 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.
This report is an update of "Global Insurance Outsourcing - The India Perspective " published by ValueNotes in August 2004.
Table of Contents
Pages: 85 1. Executive Summary
1.1 The Opportunity For India
1.2 Outsource-Ability And Offshorability
1.3 The Indian Service Provider Landscape
1.4 Key Trends And Their Impact On Future Growth Of The Industry | 2. Global Insurance Industry: Perspectives
2.1 Insurance Industry: Carrier At The Center
2.2 Life And Non-Life Segmentation
2.3 The US, UK & Japan Make Up For Three Fourths Of The Global Industry
2.4 Insurance Industry - Trends And Challenges
| 3. Insurance Outsourcing Value Chain
3.1 The Insurance Value Chain And Outsourced Processes
3.2 Offshoring Has Its Limits
3.3 Drivers Of Offshoring
3.4 Advantage India
3.5 Key Insights About Competing Destinations
| 4. Indian Vendor Analysis
4.1 Insurance Offshoring: Early Entrants
4.2 Captives
4.3 Different Types Of Operating Models
4.4 Third Party Vendors
4.5 Large, Multi-Service Vendors
4.6 Mid-Size Multi-Service Vendors
4.7 Small Players
4.8 Positioning Of Players
4.9 Margins And Billing Rates
4.10 Attrition And Training
4.11 Quality Certifications | 5. Trends, Projections and Insights
5.1 The Opportunity For India
5.2 Offshore Services Buyer Market
5.3 Employment
5.4 Innovative Operating Models To Lead The Way
5.5 Huge Catch-Up Growth Potential
5.6 Emerging Markets All Over The World Present Newer Business Avenues
5.7 Insurance Skill Development Taking Off In India
5.8 Consolidation: Simpler Scale Up Option
5.9 BPO Offshoots Of IT Companies Poised For Growth
5.10 Larger Vendors Will Rapidly Scale The Value Chain...
5.11 Non-Voice Transaction Based Processes To Go Up Significantly
5.12 Third Party 'Administrator' And 'Provider' Convergence?
| 6. Company Profiles
6.1 24/7 Customer
6.2 Cambridge Solutions
6.3 EXL Service
6.4 Inductis - subsidiary of EXL Service
6.5 Genpact
6.6 Hinduja TMT
6.7 ICICI OneSource
6.8 Karvy Global Services
6.9 Patni BPO
6.10 Progeon
6.11 TCS BPO
6.12 Wipro BPO
6.13 WNS Global Services | | 7. Directory of Service Providers | | 8. Research methodology | 9. About ValueNotes
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Table of Figures
Figure: 1 Typically outsourced insurance processes
Figure: 2 Expected Winners Among Third Party Offshore Vendors
Figure: 3 Structure Of The Insurance Industry
Figure: 4 Major Global Insurance Companies
Figure: 5 Insurance Industry Segments
Figure: 6 Country Shares In Total Insurance Premia
Figure: 7 Regulatory Changes In The Insurance Industry In Recent Years
Figure: 8 Competitive Forces In The Insurance Industry
Figure: 9 Commonly Outsourced Services
Figure: 10 Not All Processes Can Be Offshored
Figure: 11 Offshoreability Potential Of The Claims Processing Cycle
Figure: 12 Drivers And Inhibitors Of Offshoring
Figure: 13 Insurance Offshoring - Expected Benefits
Figure: 14 Differences U.S. And Indian Salaries For Various Insurance Jobs
Figure: 15 Comparative Rating Of Various Destinations
Figure: 16 Major Captive Insurance Processing Units And Employment In India
Figure: 17 Pros And Cons Of Captive And Third Party Operating Models
Figure: 18 Various Operating Models For Offshoring
Figure: 19 Structure Of The Third Party Vendor Industry
Figure: 20 Key Characteristics Of Third Party Vendor Categories
Figure: 21 Large Multi-Service Vendors Offering Insurance Services
Figure: 22 Large, Multi-Service Players: Key Features
Figure: 23 Mid-Size Multi-Service Vendors Offering Insurance Services
Figure: 24 Mid-Size Multi-Service Vendors: Key Features
Figure: 25 Small Vendors Offering Insurance Services
Figure: 26 Small Players: Key Features
Figure: 27 Insurance BPO Vendors: Size Vs. Specialization
Figure: 28 Types Of Billing Rates
Figure: 29 Billing Rates By Type Of Work In The Value Chain
Figure: 30 Higher Billing Rates For Bundled Services
Figure: 31 Billing Rate Trends – 2000-10
Figure: 32 Human Resource Recruitment And Retention Strategies
Figure: 33 Certifications And Standards For Insurance Outsourcing Vendors
Figure: 34 Certifications Acquired By Various Companies
Figure: 35 Indian Insurance Outsourcing Opportunity: FY 2006-2010 ($ Mn)
Figure: 36 Offshore Services Buyer Market By Region: FY2006 To 2010
Figure: 37 Employment Opportunity In Insurance Outsourcing: FY 2006 - 2010
Figure: 38 The Captive-Third Party Mix: FY2006
Figure: 39 The Captive-Third Party Mix: FY2010
Figure: 40 Insurance Industry In The BPO Industry Maturity Lifecycle
Figure: 41 Recent Mergers And Acquisitions In The Global Insurance Outsourcing Market
Figure: 42 Synergy Between IT Parent And BPO Unit
Figure: 43 Expected Winners Among Third Party Offshore Vendors
Figure: 44 Growth Expectations For Outsourcing Of Various Insurance Services |
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Philippines has been increasingly gaining traction as an offshoring destination, especially in niches like call centers, medical transcription, animation, publishing and legal services.