Market Analysis
published on Oct 22, 2014
Report Overview:
NelsonHall's market analysis of property and casualty outsourcing in the automotive sector consists of 67 pages.
Who is this Report for:
NelsonHall's "Targeting P&C BPO in the Automotive Sector" report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within the automotive sector of property and casualty outsourcing
- Vendor marketing, sales and business managers developing strategies to target BPO service opportunities within the automotive sector of property and casualty insurance
- Financial analysts and investors specializing in the IT services and BPO sector, including property and casualty in the automotive sector.
Scope of this Report:
The report analyzes the worldwide market for property and casualty outsourcing (P&C BPO) in the automotive sector and addresses the following questions:
- What is the market size and projected growth for the global automotive insurance BPO market by geography?
- What is the profile of activity in the global automotive insurance BPO market by industry sector?
- What are the top drivers for adoption of automotive insurance BPO?
- What are the benefits currently achieved by users of automotive insurance BPO?
- What factors are inhibiting user adoption of automotive insurance BPO?
- What pricing mechanisms are typically used within automotive insurance BPO and how is this changing?
- Who are the leading automotive insurance BPO vendors globally and by geography?
- What combination of services is typically provided within automotive insurance BPO contracts and what new services are being added?
- What is the current pattern of delivery location used for automotive insurance BPO services and how is this changing?
- Which services are delivered from onshore and which from offshore?
- What are the challenges and success factors within automotive insurance BPO?
Key Findings & Highlights:
NelsonHall has segmented the drivers behind auto P&C BPO into four areas:
- The need to reduce customer churn
- Customer administration
- Claims transformation
- Upping the underwriter.
The majority of providers are not auto-focused and therefore provide wider P&C BPO services applicable to auto, e.g. policy admin. Providers with a defined auto strategy go beyond this to include offerings in support of VRNs and auto-specific analytics, e.g. telematics.
Growth across all segments will be driven by the requirement of P&C insurers to:
- Reduce cost: while ensuring service level is not impacted
- Strengthen and deepen customer engagements: including demonstrating the ability to enter and exit new lines quickly and offer online purchasing
- Improve claims skills: sometimes not possible in-house, forcing acquisition of specialist providers.
Within P&C BPO, fewer than 50% of vendors have an auto specific strategy; most providers tend not to separate auto from other lines. Auto P&C BPO has seven service areas, with claims management and policy admin making up the bulk of activity in 2014.
Around 40% of auto P&C BPO providers have acquired to build capability; others plan to invest the same way in the next five years, in particular in support of analytics, where key capabilities for auto P&C BPO include subrogation services and, increasingly, telematics.
Strong themes going into 2015 will be around predictive analytics, automation and digital transformation; investment in these areas is on the agendas of auto insurers and auto P&C BPO providers alike.
The U.S., U.K. and Continental Europe are the main target geographies for auto insurance BPO, but unlike wider P&C, APAC overtakes LATAM in terms of future vendor interest for auto P&C BPO.
Critical success factors include the ability to reduce cost, increase efficiency and identify areas of risk, across the whole auto process.
