Global Insurance Outsourcing -- The India Perspective: Overview, Trends, Insights and Key Vendor Profiles

The Global Insurance Outsourcing report is the first in a series of reports from the ValueNotes Outsourcing Practice that will look at outsourcing in diverse verticals from an Indian perspective, and seeks to provide a flavor of important trends, issues and needs. It is a review of outsourcing in the global insurance sector, types of processes being outsourced and by whom, growth drivers and inhibitors, service delivery models, captive vs. third party BPOs, offshoring destinations, the Indian market, major vendors, along with profiles.

(PRWEB) September 25, 2004 -- The potential for insurance outsourcing market is enormous, with over 1500 Property & Casualty (P&C) insurance companies and 1300 health insurance companies in the US alone. Globally, the banking, financial services and insurance (BFSI) vertical is the fastest growing segment in outsourcing. India's BFSI outsourcing revenues in 2003 stood at $1.1 billion, which constituted 2.5% of global BFSI outsourcing. The top 5 Indian vendors in BFSI get 49% of their revenues from BFSI.

ValueNotes estimates that the Indian insurance outsourcing revenues are likely to grow to $790 million by 2007, from an estimated $367 million in 2003, a CAGR of 21%.

9/11 resulted in shrinking margins, higher claims disbursement and increasing competition for the sector. Insurance companies are now forced to look at outsourcing/offshoring to improve efficiencies and channelize resources towards the core functions of product development and innovation.

Several niche providers with relevant domain expertise are emerging, encouraging insurance companies to outsource more value-added services. The growth drivers are common to all verticals - cost saving, ability to focus on core processes of product development, innovation & marketing strategy and minimizing risk through multiple delivery centers.

For the insurance outsourcing vertical, the critical drivers are:
- Insurance regulation and statutory documentation in the US
- Deregulation of insurance markets in countries like India, China and Japan
- HMOs move their processes offshore - Fueled by the success of Aetna in moving their claims adjudication process to India, many other organizations want to tread the same path.

According to senior research analyst at ValueNotes, Nilesh Paranjape, India as an offshoring destination has much to offer the insurance industry." It is already an established outsourcing destination for a variety of services and verticals. And several of the large outsourcing vendors already have significant experience in the BFSI vertical. Further, large Indian service providers have, through organic growth or acquisitions, set up centers in US, Canada and other places that qualify as "near-shore" outsourcing destinations and are therefore more acceptable to first time outsourcers.

India has now become one of the most popular destinations for offshoring insurance processes. Some of the top insurance companies in US & Europe like Cox Insurance Holdings, Aviva Life Insurance, AXA Sun Life have moved one or more processes to India-based captive or third party outsourcing firms.

Some of the top players in the insurance vertical include WNS, HTMT, EXL, ICICI OneSource and GTL. Currently around 63% of Indias insurance outsourcing revenue comes from the US and around 22% from EMEA.

The Global Insurance Outsourcing report is the first in a series of reports from the ValueNotes Outsourcing Practice that will look at outsourcing in diverse verticals from an Indian perspective, and seeks to provide a flavor of important trends, issues and needs. It is a review of outsourcing in the global insurance sector, types of processes being outsourced and by whom, growth drivers and inhibitors, service delivery models, captive vs. third party BPOs, offshoring destinations, the Indian market, major vendors, along with profiles.

For more information on this report or to buy this report, call us at 91 20 2588 4676 or 2589 9590 or write to us at bporesearch@valuenotes.com

About ValueNotes
ValueNotes Database is a leading provider of business intelligence and research, with expertise across selected domains and types of customer needs. Working with clients across the globe we have significant understanding of international markets.

About ValueNotes Outsourcing Practice
The ValueNotes Outsourcing Practice is one of the largest information providers on the outsourcing industry. Our Outsourcing Practice uses a comprehensive, analytical framework providing fresh insights into the fast emerging and yet, complex outsourcing space. We extensively track the outsourcing space in-depth through a regular analysis of news and events and continuous primary research and contact with the industry.

Our publications combine our extensive research experience and knowledge of the outsourcing space to bring you unparalleled insights and analysis. We continuously track all news and events in the outsourcing industry, and supplement this with extensive primary research from vendors, customers, consultants and other experts in the outsourcing space. Over time, we aim to provide a wide range of publications with differing levels of depth for the needs of different audiences.

- ValueNotes Outsourcing News
Our free, weekly email newsletter provides a continuous stream of useful statistics, insights, analysis and opinion. Unlike many available newsletters, we do not simply aggregate news, but provide fresh views and research on important issues.

- ValueNotes Outsourcing Digest
Up-to-date information and analyses of the latest happenings, events and stories in the BPO industry every month, with regular tracking of Mergers and Acquisitions, expansion plans, industry news analysis, company profiles and emerging areas in outsourcing.

- Outsourcing: The India Perspective Series
This series of reports will look at outsourcing in diverse verticals from an Indian perspective, and seeks to provide a flavor of important trends, issues and needs -- for buyers looking to outsource specific processes from India.

- BPO Directory
A comprehensive list of Indian BPO services, across verticals and horizontals, complete with names, emails, addresses, URLs and other important details. Free registration for outsourcing vendors -- reach out to customers across the world!

- Profiles of Leading Indian Outsourcing/BPO vendors
Detailed profiles of leading players in the Indian Business Process Outsourcing industry. These profiles contain details of contact information, key people, financial data, infrastructure details, recent news, strategies, competitive positioning and much more.

To learn more about the ValueNotes Outsourcing Practice, see samples, order reports or provide us with your feedback on this research, please go to www.valuenotes.biz or write to bporesearch@valuenotes.com. You can also call us at 91 20 2588 4676 or 2589 9590.
###