Insurance BPO market to hit $83.7Bn by 2029 — Research and Markets
DUBLIN, IRELAND — The Insurance Business Process Outsourcing (BPO) Services Market is poised for significant growth to $83.70 billion by 2029, expanding at a Compound Annual Growth Rate (CAGR) of 7.76% from $57.61 billion in 2024.
Insurance BPO, a critical segment of the Banking, Financial Services, and Insurance (BFSI) sector, has experienced a notable increase in the outsourcing of complex operations.
A new report by Research and Markets attributed this surge to the industry’s digital transformation, which was driven by the need for insurance companies to adapt to the changing landscape brought on by the COVID-19 pandemic.
The crisis has compelled BPO firms to implement technological and digital changes, allowing them to operate virtually and maintain optimal service levels while minimizing health risks to employees.
Investments in digital platforms are crucial for engaging consumers across multiple channels and maintaining a digital presence. These investments are enhancing customer experience and transparency in purchasing processes.
By leveraging BPO, insurance companies have significantly reduced operating costs and streamlined back-office functions.
In Europe, the United Kingdom stands out as a dominant player in the insurance BPO market, with London-based BPO businesses like Cogneesol offering a range of services that help insurance firms reduce costs and comply with regulations.
The growth of autonomous vehicles and related legislation in the UK is also expected to expand the market further, presenting new opportunities for BPO providers in the region.
A previous Research and Markets report also forecasted growth in the insurance BPO market by 2028, driven by the adoption of automation, such as robotic process automation (RPA) and artificial intelligence (AI), to enhance efficiency and customer experience.
