As margins in parts of the business have tightened in recent years, cutting costs has become ever more important to insurers, leading to a boom of outsourcing companies. Intelligent Insurer examines which functions are being outsourced and which are seen as too important to risk giving to a third party.
Whether or not he intended to, former Singapore prime minister Lee Kuan Yew left a lasting legacy to the international business community with his saying: “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”
The London insurance market is certainly prominent among those sectors to have listened, with outsourcing organisations appearing to have sprung up everywhere to offer the chance to save money, improve quality and free up company resources for other activities.
The outsourcers can handle everything from payroll and IT to underwriting and claims services, although loosening their own grip on the latter two functions still represents a step too far for some organisations.
Insurance, Outsourcing, Stephen Card, Charles Taylor, Calvin Cole, Giles Baxter, Richard Lawson, Alastair Speare-Cole, David Hay