Insurance Outsourcing Services Market Report 2026

The insurance outsourcing services market size has grown strongly in recent years. It will grow from $9.88 billion in 2025 to $10.56 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to increasing insurance policy volumes, rising operational cost pressures, expansion of digital insurance offerings, growing complexity of regulatory compliance, availability of specialized outsourcing providers.

The insurance outsourcing services market size is expected to see strong growth in the next few years. It will grow to $13.64 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing adoption of ai-enabled underwriting support, rising focus on scalable insurance operations, expansion of cloud-native insurance ecosystems, growing demand for analytics-driven decision support, increasing integration of outsourcing with core insurance platforms. Major trends in the forecast period include increasing outsourcing of claims and policy administration, rising adoption of rpa and ai-driven insurance operations, growing demand for end-to-end managed insurance services, expansion of cloud-based insurance platforms, enhanced focus on cost optimization and compliance.

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 companies operating 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, Triyock Business Process Outsourcing (Triyock BPO).

North America was the largest region in the insurance outsourcing services market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance outsourcing services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurance outsourcing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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