Competition within the property and casualty insurance space is heating up. By outsourcing IT processes, property and casualty insurers can ensure the smoothest possible technology migration from their legacy systems with out excessive fiscal deficits.
Within the Property and Casualty insurance segment a fair degree of consolidation is occurring. The dominant position of large market leaders, the effects of burgeoning technology and a robust, competitive pricing environment will cause dozens of insurers to exit the personal property and casualty insurance industry over the next few years, according to a new study by Conning Research and Consulting.
As a result, competition within the property and casualty insurance space is heating up.
Updating legacy systems seems to be unavoidable in the property and casualty insurance segment. However as markets become more competitive, outsourcing seems to be an inevitability. According to a recent study by Celent Communications titled "Raising the Bar on Offshore IT for Insurance," a 30 percent or greater project cost reduction is an attainable figure when outsourcing IT work. In fact the Singapore-based research firm, Fusion Consulting, reports that India’s IT and BPO industry exports have grown 33% to reach $23 billion, up from $18 billion last year. And, according to NASSCOM, the Indian IT industry is on course to meet its target of $60 billion by 2010.
In fact Cycle management is the key driver of P&C insurance company investment strategies today, according to a new study by Conning Research and Consulting, Inc.
By outsourcing IT processes insurers can ensure the smoothest possible technology migration from their legacy systems with out excessive fiscal deficits. Variable costs can now be converted to manageable fixed costs which allow shoring up of capital for enterprise growth, product development and expansion of distributorships.
Furthermore the internet will play a major role in the expansion of the insurance segment as an ever burgeoning techno savvy population will scour the World Wide Web for insurance products rather than go for the traditional route of contacting an insurance agent. So what signaled the demise of the local stock broker will occur in the field of insurance as more and more people will prefer to evaluate the various insurance brands independent of biased insurance agents.
Vendor selection and deciding which processes to outsource are crucial decisions and are imperative to the long term survival of any undertaking. As a result the following steps serve as a guide to determining which segments of the property and casualty insurance vertical should be outsourced.
Overall, what started out as pure back office work has now transcended the BPO-KPO divide, and even core insurance processes are being off shored. Indeed the focus of insurance companies particularly in the property and casualty insurance vertical has switched from just back office support work to rectification and strengthening of critical business processes.
It is to this segment of property and casualty insurance work that Outsource2india provides proficiency. Bringing to you a host of comprehensive solutions that will fit your property and casualty insurance offshoring requirements.
We are a company who understands the dynamics of outsourcing and have vast amount of expertise garnered over 18 years now.
We have the necessary technical expertise combined with knowledge and industry based experience.
Our technological competence enables the integration of electronic document generation, processing and communication.
We are equipped with the technological competence and the required bandwidth which makes the conjoining of operations a seamless experience.
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