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