This report provides a comprehensive assessment of automotive insurance BPO services globally in terms of spending patterns, service offerings available in the market, client demand for automotive insurance BPO, delivery locations and next-generation offerings.

Cox commented: "Long standing issues of high customer expectations and competitive pricing remain, but now with the added pressure from comparison websites; as a result, the motivations for automotive insurance BPO in 2014 are starting to go beyond basic cost-take out and process improvement, the need now is for claims transformation which accounts for over 40% of customer requirements in 2014".

The majority of vendors provide full scope of P&C BPO services for all lines of business, including automotive, rather than services designed for auto specifically; services less frequently provided (and more commonly offered by specialists) tend to include support of vehicle repair networks (VRN) such as body shops and assessment services; likewise, most enabling technology is still in support of wider P&C business, rather than auto P&C BPO specifically; to have technology in support of auto insurance specifically requires an auto focus, which many providers do not have.

Increasing application of analytics to strengthen customer relationships and to align price to performance through telematics will continue through 2018 with many suppliers acquiring in support of analytics tools and software. Cox says, "Through use of this level of consumer analytics, covering both lifestyle and driving patterns, there will no longer be a need to make estimates on how to price insurance policies or to guess which products might suit the needs of individuals, based on mass analysis."

Going forward, auto P&C BPO will continue to make up the largest proportion of the wider P&C BPO market since it has more scope to be outsourced than other lines of P&C, largely due to the level of customer interaction and potential to tailor products. In order to be successful, vendors will be expected to deliver cost savings of at least 30% by offshoring elements of the process and increasingly through automation.

Additionally, the ability to operate VRN's will be a distinct differentiator in the market.

This report is available to subscribers here. Non-subscribers can access a report abstract here and can contact Lindsey Ball to purchase the report.