Celent: Life Insurers to Use BPO for Closed Blocks

May 26, 2011 at 08:00 PM
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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.