By Mike Fieseler
- Does outsourcing make sense for me and my organization?
- What makes outsourcing successful?
Today, leaders who run operations for re insurers, insurers and agents or brokers must ask and answer these two questions for their organizations — even if they’ve recently answered them.
The modern history of business is replete with companies that boosted success by narrowing down to their core business operations — while outsourcing non core tasks to specialists.
In our experience, insurance firms find it beneficial to tap outsourcing relationships for two key areas:
On the insurance “assembly line,” companies can gain efficiency by compartmentalizing tasks such as data entry, application review and screening, and web-based data gathering. Using outsourcing resources to screen applicants before making the larger investment in underwriting can speed up the cycle time, decrease costs and improve risk.
- Back-Office Processing
Bottlenecks such as paper jams, workflow atrophy and administrative overload (caused by backlogged underwriting requirements, neglected applications and claims discrepancies) slow progress and erode profit. Outsourcing administrative and processing functions makes it possible for risk management specialists to focus on what they do best. The result: Underwriters, claims examiners and other specialized personnel are not diverted from core competencies to perform tasks that could be done more cost- and time-effectively if outsourced.
In future blog posts, I’ll cover some of the hurdles common to outsourcing decisions and success.
Mike Fieseler is Vice President of Business Development for Vantage Agora. He can be reached at firstname.lastname@example.org or (216) 802-8283.