| Outsourcing is a vital component to the growing | | | | Claim eligibility and estimation |
| division of labor, engulfing all societies. Some countries | | | | Claim setup |
| are inherent with the ability to outsource their business | | | | Claim support and auditing |
| services to suppliers outside the nation, a process | | | | - Claims-only administration |
| known as offshoring or offshore outsourcing. | | | | Disbursement |
| Outsourcing needs intelligent and ingenious minds to | | | | - Due attentiveness and planning |
| figure out the optimum and optimized solution. | | | | Fast tract adjudication |
| Nowadays outsourcing is one of the hottest trend in IT | | | | - Financial reporting |
| services.In this context, India and China are considered | | | | Full claim settlement |
| to be the two most popular countries which are | | | | - Life, health and annuity administration and customer |
| known for low cost outsourcing. Both countries | | | | services |
| produce over 200,000 engineers and science | | | | Modernization of legacy applications |
| graduates each year. | | | | - New business and underwriting |
| | | | | - Reinsurance administration |
| Some of the reasons of outsourcing Research & | | | | - System consolidation and conversion |
| Development works to India and China are: | | | | By offshoring insurance claims administration, |
| | | | | companies can focus on their core business, improve |
| 1. Cost-saving: They offer relatively lower over-all cost | | | | competitiveness and overall performance. Insurance |
| of services like reducing scope, defining quality levels, | | | | claim processing needs cover everything from |
| repricing, re-negotiation, cost re-structuring. | | | | damage assessments to documentation, claims |
| 2. Improved quality: They help achieve a step change | | | | submissions, and claims settlement. |
| in quality through contracting out the service with a | | | | In an insurance claim entry, a person can file a claim |
| new service level agreement. | | | | and get benefits in the event when any damage has |
| 3. Access to talent: They have access to a larger | | | | occurred to any of his valuables. Depending upon |
| talent pool and substitute source of skills, particularly in | | | | various circumstances and the agreement signed, the |
| science and engineering. | | | | insurance company may or may not approve the |
| 4. Capacity management: They have an enhanced | | | | claim. |
| method of capacity management of services and | | | | Through efficient insurance claims processing, |
| technology where the risk in providing the excess | | | | companies recognize additional savings through lower |
| capacity is borne by the supplier. | | | | cost of sales. This ultimately promotes pricing flexibility |
| Factors like globalization, deregulation, increased | | | | and creates new business opportunities. Apart from |
| competition, inability to differentiate products, pressure | | | | saving operational costs, companies can also improve |
| to reduce costs by improving operational efficiency | | | | customer service, which leads to prolonged |
| and even terrorist attacks have coerced the insurance | | | | maintenance of customer relationship and higher |
| companies to undergo drastic changes in its policy | | | | profits. |
| systems. This transmutation has in turn contributed to | | | | By outsourcing insurance services, a client is freed |
| the growth of the insurance industry in the last few | | | | from the time-consuming and debilitate task of settling |
| decades. | | | | insurance claims. In this manner, the client benefits by |
| IT field defines outsourcing as either commissioning the | | | | being able to concentrate more on achieving their |
| development of an application to another organization | | | | primary business goals and objectives. If not done |
| (usually a company that specializes in the development | | | | properly, claim settlements can get stalled in legal |
| of this type of application) or hiring the services of | | | | action. In some instances, certain communication |
| another company to manage all or parts of the | | | | channels are opened with appropriate parties to |
| services that otherwise would be rendered by an IT | | | | ensure that the claims are settled in the least possible |
| unit of the organization (this might not include | | | | time. |
| development of new applications). | | | | Majority of the insurance claims support services |
| | | | | constitute expert team of cost consultants, insurance |
| Insurance Outsourcing Services provided by most of | | | | claims specialists and third-party insurance review |
| the companies include a range of services: | | | | arbitrators. They accelerate all claims settlement |
| - Account settlement | | | | processes and ensure that all the potential barriers are |
| - Acquisition and conversion | | | | removed. Some companies offer a strong financial |
| - Business management and ongoing administration | | | | value proposal for insurance solutions, along with |
| - Business transition | | | | proven delivery and flexible approach. |
| Claim document imaging | | | | |