Insurance BPO market to grow 5.4% annually through 2034

In 2024, claims processing accounted for over 30% of total market revenue.

The global insurance Business Process Outsourcing (BPO) market is projected to register a compound annual growth rate (CAGR) of 5.4% from 2025 to 2034.

The market was valued at $7.5b last year, according to a recent Global Market Insights report.

Stricter compliance regulations, driven by concerns over data security and regulatory risks, are increasing the demand for outsourcing.

Governments have enacted laws such as GDPR in Europe, the NAIC Model Law in the US, and China’s Personal Information

Protection Law (PIPL), imposing strong restrictions on data security. 

To support insurers with regulatory compliance, BPO providers have automated risk assessment, real-time monitoring, and AI-driven fraud detection.  

China’s PIPL, introduced in 2020, applies to any organisation handling Chinese citizens' data, even if located outside the country. It mandates stricter data transfer regulations, mandatory security controls, and higher penalties for non-compliance.  

As insurers prioritise customer engagement and product innovation over administrative tasks, the need for outsourcing continues to rise. 

In 2024, claims processing accounted for over 30% of total insurance BPO revenue. By insurance type, the property & casualty segment held the largest market share at 40.9%, driven by increased adoption of digital claims management.  

China’s insurance BPO market is expected to grow significantly between 2025 and 2034, supported by advancements in AI, big data, and automation. 

In the broader Asia-Pacific region, government incentives, such as tax benefits for IT and BPO firms in India, further encourage global insurers to expand outsourcing operations.