The UK insurance industry continues to operate in a challenging environment. Companies face increasing regulatory requirements while striving to cut costs, improve efficiency and enhance customer service. The rapid growth of internet sales, industry consolidation and intensifying international competition are driving dramatic shifts in consumer expectations, pricing and service delivery. As organisations seek ways to compete more effectively, they are turning increasingly to outsourcing to deliver both specialised technical solutions and management of non-core services and operations. Annual growth of 6% is forecast in this market to 2010.*

Source: Ovum 2006

Drivers

• Need for effective administration processes to address complex regulation
• Need to reduce operating costs and improve customer service
• Opportunities to establish strategic partnerships for low risk service improvement and business transformation
• Focus on improving management of claims costs, in particular through fraud and leakage prevention
• Need to meet customer demands for more transparency, information, flexibility and value
• Continued rise of affinity brands – emerging interest from internet service providers and utilities alongside growing numbers of retailers.