Topic: Insurance BPO Service Provider Landscape

with PEAK Matrix

TM
Assessment 2013
BFSI BPO
Market Report: December 2013 Preview Deck
Copyright 2013, Everest Global, Inc.
EGR-2013-11-PD-1032
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
2
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1 Banking, financial services, and insurance
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Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
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Background of the research
Insurance BPO is a US$2.3 billion market growing at a healthy 12 to 15% annually. While BPO activity across
Life & Pensions (L&P) and Property & Casualty (P&C) segments continues to be high, commercial insurers
and reinsurers are also looking at BPO to further increase efficiency and effectiveness of their operations.
Beyond United Kingdom and United States., Asia Pacific and Rest of Europe are also witnessing high levels of
activity. The scope of BPO relationships is also expanding beyond transactional activities into more complex
judgment-intensive work such as actuarial, underwriting, and analytics.

Service providers need to invest in a differentiated go-to-market strategy to succeed in a growing but
increasingly competitive insurance BPO market. Arbitrage-based value proposition is table-stakes and
investments in technology, analytics, and domain expertise are required.

This report focuses on the service provider landscape of the global insurance BPO market. We analyze:
Relative positioning of 16 service providers on Everest Group PEAK Matrix for insurance BPO
Service provider market success
Service provider capability assessment across key dimensions
Emerging service provider trends
Implications for insurers and service providers
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
4
Table of contents (page 1 of 2)
Background of the research 6

Executive summary 11
Summary of key messages 12
Implications for key stakeholders 15

Section I: Everest Group PEAK Matrix for insurance BPO 17
Summary 18
Insurance BPO PEAK Matrix 22
Assessment of service providers 23
Insurance BPO Star Performers 2013 25

Section II: Key insights on PEAK Matrix dimensions 26
Summary 27
Context 29
Market success 30
Scale 31
Scope 33
Technology 37
Delivery footprint 38
Topic Page no.
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
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Table of contents (page 2 of 2)
Section III: Emerging service provider trends 41
Summary 42
Newer buyer geographies 45
Complex processes 47
Commercial insurance 49
Domain expertise 51
Technology solutions 52

Appendix 55
Glossary of key terms 56
BFSI BPO research calendar 57
References 58
Topic Page no.
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
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Overview and abbreviated summary of key messages
Some of the findings in this report, among others, are:
Everest Group classifies 16 insurance BPO service providers on Everest Group Performance |
Experience | Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders,
and Emerging Players
The 2013 insurance BPO PEAK Matrix positioning is as follows:
Leaders: CSC, EXL, TCS, and WNS
Major Contenders: Cognizant, Dell, Genpact, HCL, Infosys, Serco, Sutherland Global Services, and
Wipro
Emerging Players: iGATE, MphasiS, Syntel, and Tech Mahindra
TCS and Cognizant emerged as the Star Performers since they demonstrated the strongest forward
and upward movement year over year on the PEAK Matrix
Everest Group PEAK
Matrix for insurance
BPO
This report uses Everest Groups proprietary PEAK Matrix to assess and rate service providers for insurance BPO on various dimensions of
their capabilities. It also discusses key emerging trends in insurance BPO.
TCS has the largest market share by revenue, while EXL has the largest number of insurance BPO
clients. CSC and WNS are the other two players that make up the top quartile by market success
Leaders hold a clear advantage over Major Contenders and Emerging Players in their scale of operations
EXL and TCS have the largest scale of insurance-specific BPO. The top quartile performers by scale
typically sign larger contracts and recognize higher revenue per FTE than other service providers
Each insurance LoB and geography is dominated by different providers
All service providers assessed, have strong offshore capabilities through presence in India
Key insights on
service provider
delivery capability
Around 65 to 70% insurance BPO contracts include one or more of the complex judgment-intensive
services as compared to 20 to 25% five years ago
L&P and P&C insurance buyers have very difficult technological needs driven by the different nature of
their industries and their products
Emerging service
provider trends

Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
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This study offers three distinct chapters providing a deep dive
into key aspects of insurance BPO; below are four charts to
illustrate the depth of the report
Insurance BPO PEAK Matrix 2012 Delivery capability
Scope Emerging trends
Market share in L&P insurance BPO
Percentage of FTEs
XXX
XXX
XXX
XXX
Service Provider 1

Service Provider 2

Service Provider 4

Service Provider 3

3. BPO services for
commercial
insurance
Insurance
BPO service
provider
emerging
trends
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High
Low
Insurance BPO delivery capability
(Scale, scope, technology, and delivery footprint)
25
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75
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Low High
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EXL
WNS
TCS
CSC
Genpact
Infosys
Wipro
Serco
Dell
Cognizant
Tech Mahindra
Sutherland Global Services
HCL
MphasiS
Syntel
iGATE
Source: Everest Group (2013)
Service provider
Delivery capability
Market
success Scale Scope
Technology
capability
Delivery
footprint Overall
Service provider 1
Service provider 2
Service provider 3
Service provider 4
Service provider 5
Service provider 6
Service provider 7
Service provider 8
Service provider 9
Service provider 10
Service provider 11
Service provider 12
Leaders Major Contenders High Medium-high
Emerging Players Low Medium
100% =
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
8

BFSI BPO research calendar
Topic
Published Current
June-2013 Analytics in Banking: War is Ninety Percent Information
January-2013 Insurance BPO Service Provider Profile Compendium
Release date
Q1-2014 Insurance BPO Service Provider Profile Compendium 2013
December-2013 Insurance BPO Service Provider Landscape with PEAK Matrix
TM
Assessment 2013
December-2013 Insurance BPO Annual Report 2013: In an Increasingly Volatile World, Insurance is Finding New Takers
December-2013 Capital Markets BPO Service Provider Landscape with PEAK Matrix
TM
Assessment 2013
Q1-2014 Capital Markets BPO Service Provider Profile Compendium 2013
December-2013 Banking BPO Service Provider Profile Compendium 2013
September-2013 Banking BPO Service Provider Landscape with PEAK Matrix
TM
Assessment 2013
August-2013 Banking and Financial Services (BFS) BPO Annual Report 2013 Small is the New Big!
October-2013 Global Location Insights: Sun Is Rising In the "Middle" East
Copyright 2012, Everest Global, Inc.
EGR-2013-11-PD-1032
9
Additional BFSI BPO research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended documents either
provide additional details on the topic or complementary content that may be of interest:

1. Insurance BPO Annual Report 2013 In an Increasingly Volatile World, Insurance is Finding New Takers (EGR-2013-11-R-1004); 2013. This
report provides an overview of the insurance BPO market, including adoption trends across geographies and insurance segments, key solution
characteristics, service provider landscape, and areas of service investments
2. A PEAK into the Leaders, Major Contenders, and Emerging Players of Insurance BPO (EGR-2012-11-R-0801); 2012. This report uses Everest
Group's proprietary PEAK Matrix to assess and rate service providers for insurance BPO on their market success and various dimensions of their
delivery capabilities. It also highlights the key emerging trends in the insurance BPO market and the key implications for buyers and service providers
3. Insurance BPO Service Provider Profile Compendium (EGR-2013-11-R-0812); 2012. This report provides accurate, comprehensive, and fact-based
snapshots of 10 service providers in the market. Each five page service provider profile provides a comprehensive picture of that providers service
suite, scale of operations, technology solutions, and delivery locations; along with Everest Groups assessment of the provider
4. BFS BPO Annual Report 2013 Small is the New Big! (EGR-2013-11-R-0912); 2013. This report assists key stakeholders (buyers, service providers,
and technology providers) understand the changing dynamics of the BFS BPO market and help them identify the trends and outlook for 2013. In this
backdrop, this report provides comprehensive coverage of the global BFS BPO market including detailed analysis of market size & growth, buyer
adoption trends, banking and capital markets BPO solution characteristics, and service provider landscape
For more information on this and other research published by Everest Group, please contact us:

Saurabh Gupta, Vice President:
Anupam Jain, Practice Director:
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