Insurance BPO market to reach $24Bn by 2032: Allied Market Research
DELAWARE, UNITED STATES — The global insurance business process outsourcing (BPO) market, valued at $7.9 billion in 2022, is on a trajectory to reach $24.6 billion by 2032.
This growth, representing a compound annual growth rate (CAGR) of 12.3% from 2023 to 2032, underscores the increasing reliance of insurance companies on third-party service providers for non-core functions such as claims processing, policy administration, and customer service.
According to a report by Allied Market Research, insurance BPO services enable insurers to streamline operations, cut costs, and concentrate on their primary competencies. The flexibility to scale operations in response to market demands is a critical advantage for insurance firms, making BPO an attractive option.
The insurance BPO market is also witnessing significant trends, such as the adoption of artificial intelligence and machine learning to automate processes. This technological advancement, coupled with the demand for personalized services, is expected to shape the future of the market.
Despite the benefits, data security remains a significant concern, given the sensitive nature of customer information handled by BPO providers.
Notably, large enterprises dominated the market in 2022, driven by the demand for customized BPO services and data analytics. However, the small and medium-sized enterprises (SMEs) segment is expected to grow fastest, benefiting from operational efficiencies and cost reductions through outsourcing.
Geographically, North America led the market in 2022, fueled by digital technology adoption and the need for efficiency. Asia-Pacific is projected to be the fastest-growing region, thanks to the surge in insurance companies, skilled workforce availability, and insurtech startups.
Key players in the market include Accenture, Acquire BPO, Canon Business Process Services, Cogneesol, Flatworld Solutions, Infosys Limited, Invensis Technologies, Patra, Solartis, and WNS (Holdings) Ltd. The report said that these companies are adopting various strategies to enhance their market presence and address the evolving needs of insurance companies.
