London, UK
30 December 2008

Business Process Outsourcing in European Insurance

Report Published by Celent

Divergence in approaches to BPO persists in Europe, with large swaths of UK books outsourced but little activity in Europe, where the economic crisis will test deep cultural inhibitions about BPO.

In a new report based on detailed analysis of deals and provider interviews, Business Process
Outsourcing in European Insurance, Celent reviews recent activity in the BPO market and details
current trends.

Celent estimates that the core European insurance BPO market is $2.5 billion in 2008 and will grow the next five years to reach $3.5 billion in 2013. This is moderate growth, and the impact of the region’s recession may further dampen this growth.

"Adoption of BPO by insurers for core insurance services is progressing slowly in Europe, in spite of the United Kingdom leading the way," notes Catherine Stagg-Macey, senior analyst in Celent’s insurance practice and author of the report. "Delegating core insurance functions to outside parties is perceived as a risky move, particularly in continental Europe, and is a difficult decision to make with renewed focus on job protection."

Ms. Stagg-Macey adds, "Insurers will extend existing contracts looking for further advantage. For those who have no outsourcing in place, the economic uncertainty may well contribute to concerns about the risks of outsourcing."

The 30-page report contains 19 figures. A table of contents is available online.

 Members of Celent's Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact info@celent.com for more information.

 

 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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