Why BPO?

BPO is a widely recognized cost saving measure and strategic choice in the insurance industry. Here's what the analysts are saying:

• Diamond: Business Process Outsourcing for Property & Casualty Insurance - An Opportunity for US Insurers (2007): "A Perfect Fit. BPO offers a potential cost savings of approximately 35% to the original cost basis of processes, with an additional 10% possible depending upon volume or complexity of processes outsourced."
• Celent: Insurance BPO Market survey (August 2004): "Celent believes that virtually all insurance carriers can benefit from assessing their operations for possible BPO applications. Clearly, BPO use offers potential cost benefits. But just as importantly, effectively managing business processes requires a clear understanding of how those processes work, how they fit together, and how information technology supports them. An organizational review for BPO often helps carriers by creating process discipline and awareness that may be lacking."
• Datamonitor: BPO and Sourcing Trends in Insurance - Customer Focus (Sep 2006): 'Nearly half of insurers use BPO: Insurers have made great progress in terms of BPO acceptance with the practice having gone from being considered a risky strategy for the few to a mainstream strategic choice. In fact it shows that that insurers to a degree feel compelled to put BPO on the on the C-level agenda."