Transcending Tech: Insurance Firms Find Value in Provider Expertise

In managed services, advanced technologies are critical, but they only go so far.

To hit strategic targets, companies also need advanced knowledge—across business functions, processes, industries, and technical domains.

This need for expertise is especially high in the insurance industry, where companies expect significant financial impact from managed services—and are looking to providers to help achieve it.

Cost savings and more

In a KPMG global survey of 800 executives[1], insurance companies ranked cost savings as the No. 1 criterion in considering managed services. Accordingly, they anticipate that using managed services at scale over a two-year period will contribute significantly to cash flow and profit. Nearly 40 percent of respondents foresee a gain of over 11 percent on the former, and more than half expect a gain of 4 percent to 10 percent on the latter.

That’s in addition to higher revenue from operational lifts in innovation, customer experience, and employee experience. In fact, 37 percent of insurance executives anticipate revenue bumps of 11 percent or more.

Where is this value coming from? Facing talent challenges, economic uncertainty, and a need for ongoing transformation, insurance companies expect managed services to deliver the highest returns in risk and cybersecurity; research and development; and core operations specific to the insurance industry.

Enabling outcomes through expertise

It’s clear that insurance leaders have confidence in managed services, with nearly 90 percent citing it as the most effective model for sourcing work.

But to meet their expectations on outcomes, they’re seeking the right expertise from managed services providers—particularly in business processes, technical and industry domains, and research & intellectual property. That’s how they can define their vision, operationalize it, and create competitive advantage.

Learn more about KPMG Managed Services.

Ready to explore more? Click on through to discover a world of valuable insights and empower your business with the right kind of knowledge and expertise.

*Previously published on March 21, 2023