Insurance BPO to create $2-bn revenue in India
posted in Outsourcing News and Top Outsourcing deals |Source:timesofindia.indiatimes.com
Amid falling margins and rising competition in the insurance sector globally, India has emerged as a net gainer with the country likely to generate two billion dollar revenue and over one lakh jobs through insurance outsourcing business by 2010, a KPMG report says.
The insurance industry has traditionally been one of the slowest adopters of outsourcing, but in the past few years the market has changed as a result of shrinking margins, higher claims disbursement and increasing competitions, international consultancy firm KPMG said in a report on Tuesday.
The size of the industry, with over 1,500 property and casualty insurance companies and 1,300 health insurance firms in the US alone, makes insurance outsourcing an attractive market, KPMG said.
While noting Indian offshoring industry is particularly strong in this sector, KPMG said total estimated revenues from offshore insurance BPO services from India were expected to rise from 790 million dollars in 2007 to about two billion dollar by 2010.
“Employment in the Indian insurance offshoring sector is likely to increase from 41,600 to 100,500 in 2010,” it added.
Among several benefits as a leading insurance outsourcing destination, India provides a low-cost advantage and is an established destination for outsourcing. Besides, Indian IT outsourcing firms can leverage their existing relationships with large insurers.
Though growth is constant in the insurance industry, insurers are expected to consistently deliver double-digit revenue growth to become or remain a major player.
