Outsourcing Trends in Indian Life Insurance

October 13, 2010

Abstract

The BPO market in India’s domestic life insurance business is expected to experience tremendous growth in the near future, from US$720 million today to $1.5 billion in 2013. Carriers are increasingly evaluating specialized vendors for noncore as well as core service areas.

In a new report, Outsourcing Trends in Indian Life Insurance, Celent examines the economics of the market and the evolving landscape based on a survey of 65% of market participants. It also provides a detailed analysis of the processes for each of the operational centers that are likely to be outsourced by Indian life insurance firms.

“Carriers in India are looking at outsourcing across process areas for various reasons, and hence the opportunity for vendor positioning,” says Ravi Nawal, Senior Analyst with Celent’s Indian Financial Services Group and author of the report. “The dynamics of the insurance sector in India are resulting in carriers’ increasing experimentation with business models to achieve the Holy Grail of greater market share and greater efficiency.”

This report provides a comprehensive overview and insight into the key trends in the outsourcing space from the carrier’s perspective. The report evaluates the key outsourcing drivers, trends, the demand side and outsourcing economics. It also provides a comprehensive overview of the key process areas generating the most interest.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

4

Methodology

7

Market Overview

8

Key Outsourcing Trends

11

Demand Side

14

Outsourcing Economics

16

Processes and Subprocesses

20

Conclusions

29

Leveraging Celent’s Expertise

30

Related Celent Research

31

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