Market Analysis
published on Jul 30, 2013
Report Overview:
NelsonHall's market analysis of the Life, Annuities and Pensions Outsourcing industry and LA&P BPO trends consists of 75 pages.
The LA&P BPO market has an estimated global value of $2.6bn and is expected to grow at a rate of 9.2% CAAGR through to 2017.
Growth will be led by EMEA with an estimated CAAGR of 9.2%, driven specifically by Continental Europe.
Who is this Report for:
NelsonHall's "Targeting Life, Annuities and Pensions BPO Services" report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within life, annuities, investments and pensions outsourcing
- Vendor marketing, sales and business managers developing strategies to target BPO service opportunities within life, annuities, investments and pensions outsourcing
- Financial analysts and investors specializing in the IT services and BPO sector, including life, annuities, investments and pensions outsourcing.
Scope of this Report:
The report analyzes the worldwide market for life, annuities, investments and pensions outsourcing (LA&P BPO) and addresses the following questions:
- What is the market size and projected growth for the global LA&P BPO market by geography?
- What is the profile of activity in the global LA&P BPO market by industry sector?
- What are the top drivers for adoption of LA&P BPO?
- What are the benefits currently achieved by users of LA&P BPO?
- What factors are inhibiting user adoption of LA&P BPO?
- What pricing mechanisms are typically used within LA&P BPO and how is this changing?
- Who are the leading LA&P BPO vendors globally and by geography?
- What combination of services is typically provided within LA&P BPO contracts and what new services are being added?
- What is the current pattern of delivery location used for LA&P BPO services and how is this changing?
- What services are delivered from onshore and which from offshore?
- What are the challenges and success factors within LA&P BPO?
Key Findings & Highlights:
NelsonHall's market analysis of the Life, Annuities and Pensions Outsourcing industry and LA&P BPO trends consists of 75 pages.
NelsonHall has segmented the LA&P BPO industry into three areas:
- 'Speed-to-market'
- 'Customer service enhancement'
- 'Legacy policy cost reduction'.
The LA&P BPO market is currently led by the 'legacy policy cost reduction' segment, however, this is set to see the slowest growth, and 'speed-to-market' will grow the most through 2017 as vendors seek to differentiate and develop innovative products to take to market at speed.
- Typical benefits sought across all segments include:
- Improvements in turnaround time
- Improvements in cycle time
- Low operating costs over the life of the contract.
In the closed-block space, LA&P BPO reduces policy admin costs and levels of attrition; while in open blocks, LA&P BPO will increase exposure and reduce cost of new market entry.
In terms of offerings, LA&P BPO continues to focus on customer services, policy maintenance and claims processing. In-line with identified customer requirements, the most commonly-offered services are policy administration, claims management and new business processing.
Within open blocks, the ability to offer straight-through processing (STP), so that data is captured once only at the point of sale, is a key offering for outsourcing vendors.
Increasing offshore delivery of non-customer-facing processes is taking place among LA&P BPO vendors, principally out of India and Manila. India remains the preferred offshore delivery location with all offshoring vendors using this geography from which to serve LA&P BPO clients.
The U.K. and U.S. remain the key LA&P BPO markets, with the emergence of LA&P BPO in continental Europe and APAC. The U.S., in particular, is a core target market for vendors, but the U.K. will see a decrease in sales emphasis, especially in the closed-block space.
Having identified target geographies, vendors are now looking at ways to capitalize on the opportunities within them: predominantly through technology augmentation and enhancements.