The global insurance business process outsourcing (BPO) market is growing. From $7.2 billion in 2024, it could hit a compound annual growth rate of 5.4% from 2025 to 2034.
According to a recent Global Market Insights report, insurers’ increased adoption of cloud computing, artificial intelligence analytics, blockchain, and robotic process automation (RPA) drives its demand.
As insurers face mounting pressure to improve efficiency and customer experience, these technologies reshape claims management, policy administration, and fraud detection.
Growth opportunities in the global insurance BPO market
More streamlined operations and regulation compliance fuel the insurance BPO market’s expansion.
Selectsys’s February acquisition of the AI-driven platform Expert Insured is a notable example. The decision boosts BPO, technology, and policy management services, automating underwriting, policy management, and accounting for managing general agents (MGAs), wholesalers, and carriers.
Stricter regulations such as the European Union’s General Data Protection Regulation (GDPR), the United States National Association of Insurance Commission (NAIC) Model Law, and China’s Personal Information Protection Law (PIPL) further push insurers to comply.
BPO providers address these challenges by automating risk assessment, real-time monitoring, and fraud detection to reduce regulatory violations and enhance data security. They also perform administrative tasks so insurers can prioritize customer engagement and product innovation.
BPO firms with advanced technology and analytics can reduce operating costs, improve productivity, and reallocate resources to high-priority initiatives.
Key trends shaping the insurance BPO market
The insurance BPO sector is rapidly evolving due to technological advancements and changing market demands. For instance, Healspan, a Bangalore-based insurtech startup, combined AI and blockchain to streamline insurance claims, boost accuracy, and prevent data manipulation.
AI and machine learning (ML) improve claims processing accuracy and reduce human intervention in underwriting and fraud detection. Blockchain technology strengthens data security and policy administration. Immutable ledgers and smart contracts decrease fraud risk and simplify transactions.
Why outsource insurance services?
More insurers hire BPO companies to accelerate operations and enhance efficiency. Commonly outsourced tasks include claims processing, policy administration, underwriting, fraud detection, actuarial services, IT support, and customer service.
Outsourcing offers several benefits:
- Reducing operating costs by leveraging an outsourcing partner’s resources and infrastructure
- Filling skill gaps with experienced professionals
- Freeing p internal teams to focus on more profitable activities.
- Quickly adjusting staffing levels based on business needs
- Providing cutting-edge tech without significant in-house investment
By outsourcing, insurance companies remain productive, cost-effective, and relevant despite the competition.
Read more Unity Communications and industry news on our main BPO News page.
Insurance Asia. (2025, March 9). Insurance BPO Market to Grow 5.4% Annually Through 2034. Retrieved March 9, 2025, from https://insuranceasia.com/insurance/news/insurance-bpo-market-grow-54-annually-through-2034
