Asia-Pacific Insurance BPO Market Study 2014: A Deal Analysis

by Wenli Yuan,  Karen Monks, June 30, 2014
Industry Trends
Asia-Pacific

Abstract

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.”

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 based 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 a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

 

Methodology

3

 

Limitations

4

 

Celent Tiers

5

The Asia-Pacific Market Estimate

6

Detailed Analysis of Deals

7

 

BPO Client Profile

7

 

Deal Size

7

 

Deal Age

8

 

Key Findings in the Deal Analysis

9

Sell Side Trends

10

 

Business Benefit

10

 

Technology Deployment Methods

10

 

Pricing Model

11

 

Key Findings in Sell Side Trends

12

Analysis by Business Process

13

 

High-Level Processes

13

 

Subprocesses

14

 

Key Findings in the Business Process Analysis

16

Final Thoughts

17

 

For Insurers

17

 

For Providers

17

Appendix

18

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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