Many of the true newcomers to insurance business process outsourcing (BPO) may be life, annuity and health insurers.
Analysts at Celent, Boston, make that prediction in a new North America insurance BPO market review.
North American insurers will spend about $2.3 billion on outsourcing this year, and that figure could grow 10% per year between now and 1016, the analysts say.
Property-casualty insurers and multinational insurers may stick with building on existing outsourcing programs, but life, annuity and health carriers may make genuine "new/new" BPO deals, in an effort to hold down the cost of administering closed books of business, the analysts say.
