Insurance Outsourcing Services Market Report 2025

The insurance outsourcing services market size has grown strongly in recent years. It will grow from $9.22 billion in 2024 to $9.88 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth during the historic period is mainly due to the rise in insurance regulations and compliance demands, increased digitalization within the insurance industry, wider adoption of digital technologies, the growing complexity of insurance products and regulations, and a higher demand for cost-efficient solutions.

The insurance outsourcing services market size is expected to see strong growth in the next few years. It will grow to $12.81 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period is expected to be driven by increasing pressure to shorten turnaround times, a stronger emphasis on scalability and flexibility, rising demand for improved customer experiences, and greater need for multilingual support services. Key trends during this period include advances in automation technologies, innovations in artificial intelligence (AI) applications, the emergence of cloud-native platforms, focused research and development in insurance-specific innovations, and progress in intelligent document processing tools.

The surge in digitalization within the insurance sector is anticipated to drive the growth of the insurance outsourcing services market in the coming years. Digitalization involves adopting digital technologies and platforms to optimize operations, boost customer engagement, and enhance service delivery across various insurance functions. This increase in digitalization stems from the growing preference for online policy management and claims processing, as consumers seek faster, more convenient, and paperless methods to manage their insurance needs. Digitalization benefits insurance outsourcing services by enabling automation, real-time data processing, and smooth customer interactions. It enhances operational efficiency by simplifying workflows and minimizing manual tasks, allowing insurers to provide quicker, more accurate, and customer-focused services. For example, in June 2025, Guidewire Software Inc., a US-based Insurtech company, reported that the percentage of customers using AI tools for insurance at least once a week rose from 21% in 2024 to 33% in 2025. Consequently, the rise in digitalization within the insurance sector is contributing to the expansion of the insurance outsourcing services market.

Leading companies in the insurance outsourcing services market are concentrating on creating advanced technological solutions, such as AI-driven platforms, to optimize workflows, improve customer interactions, and increase operational efficiency. AI-driven platforms utilize artificial intelligence to automate tasks, analyze data, and enhance decision-making, enabling businesses to improve efficiency and foster innovation. For instance, in May 2023, EXL Service Holdings Inc., a US-based data analytics and digital operations company, introduced a Generative AI Platform. This platform combines advanced generative AI capabilities with EXL’s proprietary data analytics and industry-specific solutions, allowing insurers to automate claims processing, underwriting, and customer service. It also strengthens fraud detection and offers real-time analytics, helping companies make faster, data-informed decisions while reducing manual workloads. This development highlights the increasing adoption of AI in the insurance outsourcing sector to promote digital transformation and gain a competitive edge.

In October 2023, Accenture plc, a professional services company based in Ireland, acquired ON Service Group for an undisclosed sum. Through this acquisition, Accenture aims to assist insurers in enhancing operational resilience, improving customer service, and driving business growth by leveraging ON Service Group’s extensive expertise in insurance processing and customer engagement. ON Service Group, headquartered in Germany, specializes in insurance outsourcing services, including policy administration, broker support, and customer service.

Major players in the insurance outsourcing services market are Tata Consultancy Services Limited, NTT DATA Corporation, Acquire Business Process Outsourcing (Acquire BPO) Pty Ltd, illumifin Corporation, Patra Corporation, The Remote Group Inc., Invensis Technologies Private Limited, Sourcefit Inc., Office Partners 360 Inc. (OP360), Magellan Solutions Outsourcing Inc., Eminenture Private Limited, Fusion Business Solutions (P) Limited, Covenir Business Process Outsourcing LLC (Covenir BPO), CX Insurance Services, Cynergy Business Process Outsourcing (Cynergy BPO), Cover Operation, Digital Minds BPO Services Inc., 1840 & Company LLC, Invisible Hand Consulting, and Triyock Business Process Outsourcing (Triyock BPO).

North America was the largest region in the insurance outsourcing services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in insurance outsourcing services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the insurance outsourcing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Insurance outsourcing services involve delegating various insurance-related tasks and functions to external providers who specialize in efficiently managing these operations. This approach assists insurance companies in handling their daily activities by offering support across multiple areas. These services enhance operational efficiency, lower costs, ensure regulatory compliance, and allow companies to concentrate on core activities such as risk assessment and customer engagement.

The primary categories of insurance outsourcing services include claims processing, policy management, underwriting, finance and accounting, information technology, and others. Claims processing services encompass the management and handling of insurance claims for insurers, including verification, evaluation, and timely, accurate settlement. Insurance types covered include property, health, business, medical insurance, among others, and can be delivered via on-premises or cloud-based platforms. These services utilize technologies such as robotic process automation (RPA), artificial intelligence, cloud computing, data analytics, and machine learning, catering to key users such as insurance carriers, self-insured organizations, third-party administrators (TPAs), and managing general agents (MGAs).

The insurance outsourcing services market research report is one of a series of new reports that provides insurance outsourcing services market statistics, including the insurance outsourcing services industry global market size, regional shares, competitors with the insurance outsourcing services market share, detailed insurance outsourcing services market segments, market trends, and opportunities, and any further data you may need to thrive in the insurance outsourcing services industry. This insurance outsourcing services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The insurance outsourcing services market includes revenues earned by entities through document processing, regulatory compliance management, customer onboarding assistance, premium collection services, risk data analysis and related billing support, multilingual customer service, legacy system modernization, telematics integration, and training and knowledge process services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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