This Financial Insights report analyzes the results of a survey we fielded in partnership with SourceMedia's Insurance Networking News about insurance outsourcing practices. We asked insurance company representatives to tell us where they were using or planning to use information technology outsourcing and business process outsourcing, with specific attention to policy administration, customer care, and claims management. We asked about numbers of ITO or BPO providers, the drivers for using outsourcing, where the cost savings were going, and their concerns about outsourcing. Finally, we asked a "reality check" question that impacts insurers and outsourcing providers alike: Does the ITO or BPO provider understand the insurance business and the processes it is supporting for your firm?

• Financial Insights Opinion
• In This Report
  • Methodology
  • Figure: Respondents by U.S. Geography
  • Figure: Respondents by Insurance Company 2005 Net Written Premium
  • Figure: Respondents by Major Insurance Lines of Business
• Situation Overview
• Table: U.S. Insurance ITO and BPO Spending, 2005 and 2010 ($B)
  • Research Findings: Insurance ITO and BPO Sourcing Practices
    • General ITO and BPO Outsourcing Tendencies
    • Figure: Outsourcing Method Currently Used
    • Figure: Number of Outsourcing Providers Company Would Consider Using
    • Outsourcing the Core
      • Policy Administration
      • Figure: Use of ITO and BPO for Some or All Policy Administration Processes
      • Claims Management
      • Figure: Use of ITO and BPO for Some or All Claims Management Processes
      • Customer Care
      • Figure: Use of ITO and BPO for Some or All Customer Care Processes
    • Drivers, Benefits, and Concerns - Oh My!
    • Figure: Most Important Driver for Using ITO or BPO
    • Figure: Where the Cost Savings from Using ITO or BPO Will Go
    • Figure: Projected IT Savings from All ITO Activities in 2006
    • Figure: Major Concern Regarding ITO or BPO
    • Figure: ITO or BPO Provider's Understanding of the Insurance Business and the Processes It Is Supporting
• Future Outlook
• Figure: Respondents Not Planning to Use ITO or BPO for Select Core Administration Processes
• Figure: Respondents Not Planning to Use BPO for Select Core Administration Processes
• Figure: Insurance Company Outsourcing Stages
• Essential Guidance
• Learn More
  • Related Research
  • Synopsis