How much is the insurance business process outsourcing market worth, and how is it expected to expand?
The insurance business process outsourcing market size has grown strongly in recent years. It will grow from $7.76 billion in 2024 to $8.43 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to increasing demand for cost-effective operations, increased global connectivity, increasing emphasis on sustainability and ESG, and increasing digital transformation.
The insurance business process outsourcing market size is expected to see strong growth in the next few years. It will grow to $11.7 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to the emergence of new business models, a surge in the number of insurance companies, an increasing focus on enhancing the customer experience, improving customer satisfaction, and the growing importance of data analytics. Major trends in the forecast period include increasing adoption of digital technologies, the adoption of AI and machine learning, the emergence of cloud-based services, technological advancements, and the and the adoption of AI and machine learning.
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Which Market drivers have played a significant role in driving the insurance business process outsourcing market?
The rising growth in insurance coverage is expected to propel the development of the insurance business process outsourcing market going forward. Insurance coverage refers to the amount of risk or liability that is protected by insurance services. It provides financial protection against potential future losses or damages. Insurance coverage is in demand as it allows people to transfer the risk of possible losses to an insurance company in exchange for premium payments. Insurance business process outsourcing (BPO) involves contracting out various business processes and functions of an insurance company to third-party service providers. This practice offers numerous benefits to insurance companies, making it a strategic choice for enhancing efficiency and competitiveness. For instance, in September 2023, according to the United States Census Bureau, a US-based government agency, in 2022, 92.1% of persons, or 304.0 million, had health insurance at some time in the year, reflecting an increase in the insured rate and the number of insured over 2021 (91.7%, or 300.9 million). Therefore, the increasing incidence of cybersecurity drives the growth of the insurance business process outsourcing market.
What are the key segments within the insurance business process outsourcing market?
The insurance business process outsourcing market covered in this report is segmented –
1) By Type: Asset Management, Finance And Accounting Services, Customer Care Services, Marketing, Policy Administration, Other Types
2) By Enterprise Size: Large Enterprise, Small And Medium-Sized Enterprise
3) By Application: Business, Financial Services And Insurance (BFSI), Manufacturing, Healthcare, Retail, Telecom, Other Applications
Subsegments:
1) By Asset Management: Portfolio Management, Investment Strategy Services, Fund Accounting, Risk And Compliance Management
2) By Finance And Accounting Services: Billing And Invoicing, Claims Processing, Financial Reporting And Analysis, Tax And Compliance Services
3) By Customer Care Services: Call Center Operations, Claims Support, Policyholder Services, Helpdesk And Assistance Services
4) By Marketing: Digital Marketing, Campaign Management, Lead Generation And Sales Support, Market Research And Analytics
5) By Policy Administration: Policy Issuance and Renewal, Underwriting Support, Risk Assessment, Claims Management
6) By Other Types: IT Support Services, Human Resources Management, Data Management and Analytics, Legal and Compliance Services
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Which key players are shaping the insurance business process outsourcing market?
Major companies operating in the insurance business process outsourcing market are Accenture plc, International Business Machines Corporation, Tata Consultancy Services Limited, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, HCL Technologies Limited, Atos SE, Wipro Limited, CGI Inc., Tech Mahindra Limited, Genpact Limited, Conduent Incorporated, Sutherland Global Services Inc., Mphasis Limited, WNS Limited, Flatworld Solutions Pvt. Ltd., EXL Service Holdings Inc., Mu Sigma Inc., Invensis Technologies Pvt. Ltd., Solartis LLC
Which transformative trends will shape the insurance business process outsourcing market landscape?
Major companies operating in the insurance business process outsourcing markets are developing AI-based insurance services to enhance efficiency, reduce costs, and improve customer service. AI-based insurance services use artificial intelligence technologies, such as machine learning and data analytics, to strengthen various processes in the insurance industry, including underwriting, claims processing, customer service, and risk assessment. For instance, in June 2023, Expert.Ai SpA, an Italy-based software company, launched the Expert.Ai Platform for Insurance providers to power underwriting and claims solutions using natural language processing (NLP). The platform enables insurers to eliminate documents from review cycles, extract needed data, and prioritize submissions or claims for expedited review or assignment to senior adjusters based on complexity. The platform eliminates the need for manual document review by automatically extracting critical data, prioritizing submissions and claims based on complexity, and providing summarized insights to expedite decision-making. The expert.ai Platform for Insurance, which automates monotonous processes and allows underwriters and claims handlers to focus on higher-value activities, promises to improve efficiency, accuracy, and speed throughout the insurance lifecycle.
How do regional factors impact the insurance business process outsourcing market, and which region is the largest contributor?
North America was the largest region in the insurance business process outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance business process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Insurance Business Process Outsourcing Market Report 2025 Offer?
The insurance business process outsourcing market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Insurance business process outsourcing (BPO) refers to the practice of contracting certain business functions to specialized outsourcing service providers. This involves outsourcing non-core activities and workflows in the insurance industry, such as claims processing, policy administration, and customer support, to external service providers who have expertise in these processes.
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