INSURANCE OUTSOURCING NEWS..

Global Insurance Outsourcing Growing

By Carrie Burns March 28, 2010

The insurance industry, which has lagged behind others in outsourcing business and technology processes abroad, is now the fastest growing offshore service sector with a CAGR of 33%, according to “The Black Book of Outsourcing,” from Clearwater, Fla.-based Brown-Wilson Group.

BOverall, Brown-Wilson reports, global insurance outsourcing is growing at a CAGR of 8%, and is expected to become a $24 billion industry next year. Onshore sourcing relationships are the favored destination of 91% of insurance firms, while 9% elect to have suppliers from abroad. However, that mix is shifting offshore at a breaking pace.

Research from London-based independent market analyst Datamonitor echoes the increase in outsourcing. Insurers in Europe and the United States are increasingly considering policy administration business process outsourcing (BPO), says the report, "Trends and Strategies in Policy Administration BPO.”

P&C (PROPERTY & CASUALTY)

NEW BUSINESS

- Application Intake, Set Up and Management:
 
  • Initial application system set up
  • Application requirements gathering (e.g., MVR, property details)
  • Current coverage contact change
  • First premium collection verification
  • Rules based rate quoting
  • Broker agent call center
  • Indexing if also imaging system

- Underwriting & Application Management
  
  • Set up application requirements – Run Motor Vehicle Report
  • Application processing
  • Standard underwriting
  • Policy print and issuance

POLICY ADMINISTRATION

- Policy Owner Services:
 
  • Change of address, personal family status,  financial info,
    notification of property improvements
  • Policy owner correspondence
  • Policy statements
  • Premium lapse notification, cancellation notification
  • Policy reinstatements
  • Payment reminders
  • Payments (EFT, credit)
  • Renewal notices
  • General customer inquiries
  

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