North American Life & Annuity (L&A) insurers are navigating entrenched operational constraints to reimagine a bold, future-ready operating model. HFS Research partnered with DXC to better understand how leading North American L&A insurers view operational modernization. Through interviews with six executives from top L&A organizations, HFS has found that true modernization requires more than just technology — it requires operational reinvention, educating, and driving mindset shifts and the right strategic partnerships.
The research indicates that enterprise insurers have fully realized the value of traditional BPO models, suggesting diminishing returns from further investment in these approaches. The next-gen BPS model—offered by providers like DXC — blends deep domain expertise, operational rigor and tech-led capabilities to help L&A carriers excel in the North American market. BPS resets L&A operating models through process-led technology, not labor.
When it comes to the customer experience (CX) and what insurers need from third-party providers, they ranked emerging technologies — automation, AI and analytics — well above labor arbitrage.
Based on insights obtained from conversations with these leading L&A insurance executives, HFS provides three goals every L&A insurance COO should adopt to modernize operations through BPS or future-proof their existing BPS investments.
- Build a scalable, adaptable and sustainable transformation engine.
- Apply the right tech — AI, automation, analytics and data to deliver smarter process outcomes.
- Modernize your operations without disrupting the legacy core.
The Bottom Line: BPS is the strategic lever for insurers to tackle capability (technical, process and organizational) debt and execute a bold, future-ready operating model through the right partner.