Insurance BPO - Service Provider Landscape with PEAK Matrix Assessment 2013
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Topic: Insurance BPO – Service Provider Landscape with PEAK Matrix TM Assessment 2013 BFSI BPO Market Report: December 2013 – Preview Deck Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-1032
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This report uses Everest Group’s proprietary PEAK Matrix to assess and rate service providers for insurance BPO on their market success and various dimensions of their delivery capabilities. It also discusses the key emerging trends in the insurance BPO
Transcript of Insurance BPO - Service Provider Landscape with PEAK Matrix Assessment 2013
Topic: Insurance BPO – Service Provider Landscape with PEAK MatrixTM Assessment 2013
BFSI BPO Market Report: December 2013 – Preview Deck
Copyright © 2013, Everest Global, Inc. EGR-2013-11-PD-1032
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Background of the research
Insurance BPO is a US$2.3 billion market growing at a healthy 12 to 15% annually. While BPO activity across Life & Pensions (L&P) and Property & Casualty (P&C) segments continues to be high, commercial insurers and reinsurers are also looking at BPO to further increase efficiency and effectiveness of their operations. Beyond United Kingdom and United States., Asia Pacific and Rest of Europe are also witnessing high levels of activity. The scope of BPO relationships is also expanding beyond transactional activities into more complex judgment-intensive work such as actuarial, underwriting, and analytics. Service providers need to invest in a differentiated go-to-market strategy to succeed in a growing but increasingly competitive insurance BPO market. Arbitrage-based value proposition is table-stakes and investments in technology, analytics, and domain expertise are required. This report focuses on the service provider landscape of the global insurance BPO market. We analyze: Relative positioning of 16 service providers on Everest Group PEAK Matrix for insurance BPO Service provider market success Service provider capability assessment across key dimensions Emerging service provider trends Implications for insurers and service providers
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Table of contents (page 1 of 2)
Background of the research 6 Executive summary 11 Summary of key messages 12 Implications for key stakeholders 15 Section I: Everest Group PEAK Matrix for insurance BPO 17 Summary 18 Insurance BPO PEAK Matrix 22 Assessment of service providers 23 Insurance BPO Star Performers 2013 25 Section II: Key insights on PEAK Matrix dimensions 26 Summary 27 Context 29 Market success 30 Scale 31 Scope 33 Technology 37 Delivery footprint 38
Topic Page no.
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Table of contents (page 2 of 2)
Section III: Emerging service provider trends 41 Summary 42 Newer buyer geographies 45 Complex processes 47 Commercial insurance 49 Domain expertise 51 Technology solutions 52 Appendix 55 Glossary of key terms 56 BFSI BPO research calendar 57 References 58
Topic Page no.
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Overview and abbreviated summary of key messages
Some of the findings in this report, among others, are:
Everest Group classifies 16 insurance BPO service providers on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders, and Emerging Players
The 2013 insurance BPO PEAK Matrix positioning is as follows: – Leaders: CSC, EXL, TCS, and WNS – Major Contenders: Cognizant, Dell, Genpact, HCL, Infosys, Serco, Sutherland Global Services, and
Wipro – Emerging Players: iGATE, MphasiS, Syntel, and Tech Mahindra – TCS and Cognizant emerged as the “Star Performers” since they demonstrated the strongest forward
and upward movement year over year on the PEAK Matrix
Everest Group PEAK Matrix for insurance BPO
This report uses Everest Group’s proprietary PEAK Matrix to assess and rate service providers for insurance BPO on various dimensions of their capabilities. It also discusses key emerging trends in insurance BPO.
TCS has the largest market share by revenue, while EXL has the largest number of insurance BPO clients. CSC and WNS are the other two players that make up the top quartile by market success
Leaders hold a clear advantage over Major Contenders and Emerging Players in their scale of operations EXL and TCS have the largest scale of insurance-specific BPO. The top quartile performers by scale
typically sign larger contracts and recognize higher revenue per FTE than other service providers Each insurance LoB and geography is dominated by different providers All service providers assessed, have strong offshore capabilities through presence in India
Key insights on service provider delivery capability
Around 65 to 70% insurance BPO contracts include one or more of the complex judgment-intensive services as compared to 20 to 25% five years ago
L&P and P&C insurance buyers have very difficult technological needs driven by the different nature of their industries and their products
Emerging service provider trends
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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This study offers three distinct chapters providing a deep dive into key aspects of insurance BPO; below are four charts to illustrate the depth of the report
Insurance BPO PEAK Matrix 2012 Delivery capability
Scope Emerging trends Market share in L&P insurance BPO Percentage of FTEs
XXX
XXX
XXX
XXX
Service Provider 1
Service Provider 2
Service Provider 4
Service Provider 3 3. BPO services for
commercial insurance
Insurance BPO service
provider emerging
trends
25th
per
cent
ile
High
Low
Insurance BPO delivery capability
(Scale, scope, technology, and delivery footprint)
25th percentile
75th percentile
Low High
75th
per
cent
ile
Mar
ket S
ucce
ss
(Insu
ranc
e BP
O re
venu
e an
d cl
ient
s)
EXL WNS
TCS
CSC
Genpact
Infosys
Wipro
Serco Dell
Cognizant
Tech Mahindra
Sutherland Global Services HCL
MphasiS Syntel
iGATE
Source: Everest Group (2013)
Service provider
Delivery capability Market
success Scale Scope Technology capability
Delivery footprint Overall
Service provider 1 Service provider 2 Service provider 3 Service provider 4 Service provider 5 Service provider 6 Service provider 7 Service provider 8 Service provider 9 Service provider 10 Service provider 11 Service provider 12
Leaders Major Contenders High Medium-high Emerging Players Low Medium
100% =
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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BFSI BPO research calendar
Topic
Published Current
June-2013 Analytics in Banking: War is Ninety Percent Information
January-2013 Insurance BPO Service Provider Profile Compendium
Release date
Q1-2014 Insurance BPO – Service Provider Profile Compendium 2013
December-2013 Insurance BPO – Service Provider Landscape with PEAK MatrixTM Assessment 2013
December-2013 Insurance BPO – Annual Report 2013: In an Increasingly Volatile World, Insurance is Finding New Takers
December-2013 Capital Markets BPO – Service Provider Landscape with PEAK MatrixTM Assessment 2013
Q1-2014 Capital Markets BPO – Service Provider Profile Compendium 2013
December-2013 Banking BPO Service Provider Profile Compendium 2013
September-2013 Banking BPO – Service Provider Landscape with PEAK MatrixTM Assessment 2013
August-2013 Banking and Financial Services (BFS) BPO Annual Report 2013 – Small is the New Big!
October-2013 Global Location Insights: Sun Is Rising In the "Middle" East
Copyright © 2012, Everest Global, Inc. EGR-2013-11-PD-1032
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Additional BFSI BPO research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended documents either provide additional details on the topic or complementary content that may be of interest: 1. Insurance BPO Annual Report 2013 – In an Increasingly Volatile World, Insurance is Finding New Takers (EGR-2013-11-R-1004); 2013. This
report provides an overview of the insurance BPO market, including adoption trends across geographies and insurance segments, key solution characteristics, service provider landscape, and areas of service investments
2. A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO (EGR-2012-11-R-0801); 2012. This report uses Everest Group's proprietary PEAK Matrix to assess and rate service providers for insurance BPO on their market success and various dimensions of their delivery capabilities. It also highlights the key emerging trends in the insurance BPO market and the key implications for buyers and service providers
3. Insurance BPO Service Provider Profile Compendium (EGR-2013-11-R-0812); 2012. This report provides accurate, comprehensive, and fact-based snapshots of 10 service providers in the market. Each five page service provider profile provides a comprehensive picture of that provider’s service suite, scale of operations, technology solutions, and delivery locations; along with Everest Group’s assessment of the provider
4. BFS BPO Annual Report 2013 – Small is the New Big! (EGR-2013-11-R-0912); 2013. This report assists key stakeholders (buyers, service providers, and technology providers) understand the changing dynamics of the BFS BPO market and help them identify the trends and outlook for 2013. In this backdrop, this report provides comprehensive coverage of the global BFS BPO market including detailed analysis of market size & growth, buyer adoption trends, banking and capital markets BPO solution characteristics, and service provider landscape
For more information on this and other research published by Everest Group, please contact us: Saurabh Gupta, Vice President: Anupam Jain, Practice Director: Skand Bhargava, Senior Analyst: Manu Aggarwal, Senior Analyst: FS BPO Team:
Phone: +1-214-451-3110 Email: [email protected]
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