DEBUG: PAGE=domain, TITLE=Search all Content,ID=505,TEMPLATE=search
toggle expanded view

Search all content here

action=something else...array(7) { ["program"]=> int(-1) ["analyst"]=> int(-1) ["industry"]=> int(-1) ["serviceline"]=> int(-1) ["vendor"]=> int(-1) ["country"]=> int(-1) ["application"]=> int(-1) } array(1) { ["post_url"]=> string(59) "/sourcing-expertise/search-all-content/?avpage-views=search" }
from:
until:

Subscribe to blogs & alerts:

manage email alerts using the form below, in order to be notified via email whenever we publish new content:

Access our analyst expertise:

Only NelsonHall clients who are logged in have access to our analysts and advisors for their expert advice and opinion.

To find out more about how NelsonHall's analysts and sourcing advisors can assist you with your strategy and engagements, please contact our sales department here.

Targeting Life, Annuities & Pensions BPS

Market Analysis

by Suri Nair

published on Oct 03, 2018

Access to this report is restricted to logged in clients with access. Login to get full access

Report Overview:

NelsonHall's market analysis of the Life, Annuities & Pensions BPS industry and trends consists of 57 pages. 

Who is this Report for:

NelsonHall’s “Targeting Life Annuities and Pensions BPS” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the life, annuities and pensions services market
  • Vendor marketing, sales and business managers developing strategies to target service opportunities within the life, annuities and pensions services market
  • Financial analysts and investors specializing in the life annuities and pensions services sector.

Scope of this Report:

The report analyzes the global market for outsourced life, annuities and pensions services and addresses the following questions:

  • What is the shape of the current and future market for outsourced life, annuities and pensions services?
  • What is the size and growth of the outsourced life, annuities, and pensions services market?
  • What are the major operational challenges faced by LA&P companies?
  • How are customer requirements changing within this market?
  • What benefits are being achieved from life, annuities & pensions BPS services?
  • Who are the leading vendors in this market and what are their market shares?
  • How are vendor offerings and delivery capabilities changing to meet emerging market needs?
  • What are the vendor challenges and critical success factors in this market?

Key Findings & Highlights:

NelsonHall's market analysis of the life annuities and pensions BPS market consists of 59 pages.

The market for outsourced life annuities and pensions services is changing, driven by a number of trends. These include:

  • The concern with rising insurance costs and the desire to reduce administration costs in the delivery of services, as well as the concern of eliminating policy termination risk
  • The need for new product launch capabilities, potentially incorporating new engagement models
  • The need for legacy platform consolidation and policy migration to new platforms
  • The mandate for insurers to comply with the new Solvency II regulations and premium transparency for insurance premiums
  • The changing demographics that are driving the life, annuities, and pensions market
  • The growth in demand for analytics and predictive modeling in support of enhanced targeting and customer engagement
  • This report investigates the impact of these trends on the global life, annuities, and pensions services market, to identify both the precise change in customer requirements and the change in vendor offerings and delivery capabilities that are being put in place to respond to these requirements.

Table of contents:

Table of contents:

  • 1. Introduction
  • Life, Annuities & Pensions BPS – definition and report description
  • 2. Changing Shape of the Life, Annuities & Pensions Market
  • LA&P BPS is currently dominated by closed block with a high level of offshoring……
  • ….with onshoring expected to grow as RPA reduces offshore activity and demand increases to support new products
  • 3. Customer Requirements
  • The EU insurance industry is impacted by Solvency II mandates for improved solvency metrics and consumer protection…..
  • Regulatory issues affecting life, annuity and pension issuers in the EU
  • …..but Solvency II may not apply in the future to U.K., with Brexit
  • Regulatory issues affecting life, annuity and pension issuers in the U.K
  • U.S. insurance regulations for LA&P are pushing carriers towards convergence in risk-metric presentation and consumer-friendly policy presentation...…
  • Regulatory issues affecting life, annuity and pension issuers in the U.S…
  • ...with U.S. regulatory issues including a proposed alteration in capital reserves calculation, and regulatory convergence & compliance
  • Regulatory issues affecting life, annuity and pension issuers in the U.S…
  • Changing demographics in the U.S. and EU are affecting LA&P issuers’ offerings, which are increasingly focusing on specialized products and annuities…
  • Social and economic issues affecting life, annuity and pension issuers…
  • …and a need for greater customer engagement, as challenges from start-ups are disrupting industry practices
  • …continued
  • Current major issues facing insurers include high costs from use of legacy platforms, time to market for launching new products, and increasing regulatory requirements
  • Operational life, annuities and pensions BPS issues
  • Closed block LA&P BPS drivers
  • …while speed to market, support for specialist product market entry, and access to differentiated engagement models are the main drivers for open block business
  • Open block LA&P BPS drivers
  • Life companies still enhancing digital customer experience but looking to take an end-to-end approach to digitalization
  • Customer experience transformation requires improved customer experience platform, improved customer segmentation, and incorporation of customer analytics
  • Key areas for process transformation & automation initiatives are policy administration, customer service, and new business
  • Half of life companies favor replacing legacy platforms with new single insurance platform
  • Characteristics sought from operations transformation partners include both automation & provision of agents
  • Life insurance is still primarily focused on RPA roll-out rather than wider adoption of
  • Best practice process models and onshore employee change management are key ingredients of future BPO contracts
  • Main benefits sought by LA&P insurers include closed block business cost reduction, speed to market capabilities, and CSAT improvement through new technologies and engagement models
  • Benefits
  • LA&P insurers are seeking vendors which can minimize policy administration costs and optimize business processes with automation, workflow and dashboard tools…
  • Closed block policy administration cost reduction segment
  • Open block LA&P BPS need new engagement models, greater flexibility and reduced cost of entry to new markets
  • ‘Speed to market’ open block segment
  • WNS assisted a leading U.S. insurer in enhancing actuarial modelling processes
  • WNS: Actuarial Modeling
  • TCS introduced RPA and chatbots into insurance processes for a large Australian insurance provider
  • TCS: Redesign operating framework with RPA
  • Genpact migrated an insurer’s policy data using Rapid Automation
  • Genpact: Data migration using Rapid Automation
  • DXC enabled a leading life insurer to streamline internal processes and improve customer service to become more competitive
  • DXC: Streamline internal processes and improve customer service
  • EXL identified a premium customer segment for a life company based on the customer expected lifetime value
  • EXL: For a leading life insurance company
  • Kane LPI completed a platform migration for an insurer in support of new product introduction
  • Kane LPI: Migration from its legacy platform to Kane LPI's proprietary IMS system
  • DXC implemented a new product for an insurer in six months with subsequent product launches in 30 days with 20% savings
  • DXC: New product launch with speed to market
  • SE2 transitioned an acquired life & annuities block to its platform achieving resulting administrative savings of 60%
  • SE2: Convert and transition a block of business
  • TCS identified strategies to improve collection and retention/ renewal rates for a large Indian life insurer
  • TCS: Retention/renewal strategies
  • 4. Market size and Growth
  • Life, Annuities & Pensions BPS market forecast to reach $3.5bn by 2022
  • Growth will be strongest in open block in both U.S. and U.K.
  • 5. Vendor Market Shares
  • The Global Life, Annuities & Pensions BPS market is led by Capita, TCS, Se2, Accenture, EXL Service, and DXC
  • The North America Life, Annuities & Pensions BPS market is led by SE2, EXL Service, DXC, TCS, Cognizant, Capgemini, and Genpact
  • The EMEA Life, Annuities & Pensions BPS market is led by Capita, TCS, Accenture, HCL, Atos, and IFDS
  • The U.K. Life, Annuities & Pensions BPS market is led by Capita and TCS, followed by HCL, Atos, WNS, and IFDS
  • 6. Vendor Offerings and Targeting
  • While policy servicing, claims management, new business services, and agency management services continue with steady growth, actuarial and analytics services are also growing….
  • …with DXC, SE2, TCS and WNS offering end to end LA&P BPS services
  • Policies types experiencing increased demand for LA&P BPS services include annuities and variable life
  • An estimated 40% of LA&P providers have acquired or partnered in the last three years, with EXL playing an active role
  • 7. Vendor Delivery in Life, Annuities and Pensions, BPS
  • DXC, Infosys, NIIT and TCS primarily focus on closed block policy administration, while Kane and EXL have strong presence in new business administration
  • Offshore delivery accounts for unweighted average of 64% of LA&P BPS FTEs
  • Agency services, surrender and terminations, fund support and actuarial services are primarily delivered from offshore locations
  • Per policy pricing is most commonly adopted followed by transaction based pricing
  • 8. Critical Success Factors
  • Critical success factors in Life, Annuities & Pensions BPS include:
  • Appendix I: Vendors Researched
  • The following vendors were researched in this report

Login to get full access:

close