Only 8% of insurance BPO users would renew their contracts as-is

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Postmedia has not reviewed the content. by Business Wire Only 8% of insurance BPO users would renew their contracts as-isAuthor of the article:Insurance outsourcing contracts are being reopened as buyers seek AI-led efficiency and stronger strategic value.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountHAMILTON, Bermuda — Only 8% of surveyed insurance organizations using business process outsourcing (BPO) would renew their contracts as-is. Among the 110 BPO users in the study, 86% would renegotiate to capture AI-driven efficiencies or completely rework terms and service levels if those contracts were renewed today. Buyers are reopening price, scope and accountability together to reflect AI-enabled delivery. The finding comes from The State of Insurance Operations, published by ISG, the global AI-centered technology research and advisory firm, based on research commissioned by mea Platform.This advertisement has not loaded yet, but your article continues below.The study surveyed 150 insurance decision-makers in August 2026 across primary carriers, brokers, MGAs and reinsurers in North America, Europe and Asia.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAI-led innovation falls below expectations for 49% of BPO users, the largest shortfall among the nine dimensions assessed, and strategic value for 39%. ISG recommends that insurers compare incumbent providers, alternative providers, platforms and internal build options using equivalent workflow evidence.What these contracts coverInsurance outsourcing runs across the value chain, from submission intake and underwriting support to policy administration, claims adjudication support, reinsurance accounting, statutory reporting and sanctions screening. In life, annuity and retirement, third-party administrators may run entire blocks of business, including closed blocks, on their own systems. Traditional arrangements are often priced by transaction or by full-time equivalent, linking the cost of additional capacity to transaction volume or staffing.Published estimates vary materially because analysts define the category differently. Global Market Insights values the insurance BPO market at $7.5 billion in 2025, The Business Research Company at $8.4 billion, and Mordor Intelligence places the broader insurance BPO services market at $68.4 billion in 2026.Where an AI alternative fitsAn AI execution platform offers a different delivery and cost model for defined components of the same work. Insurance-specific platforms can reduce the direct dependence of additional capacity on additional headcount, provided they operate within the insurer’s systems, controls and exception-management processes.For high-consequence underwriting and claims decisions, 75% of respondents would trust only an insurance-specific model or a governed hybrid approach. Only 6% would trust a general-purpose model alone, while 20% would not trust limited-oversight AI. The report outlines four conditions for trusted execution: controlled evidence sources; explicit permissions; accountable human oversight; and institution-specific rules.“Traditional BPO arrangements made sense when the only way to handle more submissions was to put more people onto the problem. Today insurers can execute workflows across underwriting, policy administration, claims and reinsurance accounting on systems that already understand insurance, deployed in weeks, scaling with demand and leaving a record of every action taken.”This advertisement has not loaded yet, but your article continues below.Martin Henley, CEO, mea Platform“The shortfall buyers name most often is AI-led innovation, and that is difficult to address at renewal because a price concession alone does not resolve it.”Ashish Jhajharia, Insurance SME and Principal Analyst, ISGThe full report, including the provider analysis, is available at www.meaplatform.com/state-of-insurance-operations.mea is the insurance-native agentic AI company. Built by insurance operators, its agents run core workflows across underwriting, claims, finance and broking on a proprietary domain-specific language model℠ (dsLM) and insurance knowledge graph℠. mea is live with more than 30 clients across 21 countries and has processed more than $450 billion in gross written premium. www.meaplatform.comAbout ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.View source version on businesswire.com: mea Platform. Elliott Bundy, Chief Marketing Officer.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.