Insurance Process Outsourcing: Before and Now

Outsourcing is the new buzz word nowadays. It has been a customary practice and is speculated to have subsisted for a long time now. However, it wasn’t until 1989 that outsourcing was officially recognized as being one of the business strategies. In the 1990s, as the businesses started working on new ways to boost their financial condition, they arrived at an idea to outsource certain tasks that weren’t linked to their primary business operations.

Tasks like accounting, legal support, insurance back office, research, etc. were contracted to third-party vendors who were experts in handling such tasks. Outsourcing back then was considered to be a merely cost-saving practice. It was considered that businesses should not outsource their core operational activities. Tasks that provided businesses a competitive edge or made it unique were kept in-house.

Over the years, insurance outsourcing services started trending. A lot of businesses especially in the insurance sector adapted to this technique. The motive behind outsourcing back then and now have completely changed. Despite the major purpose behind insurance outsourcing services, which is to cut down operational expenses, the below-mentioned are now the driving forces behind outsourcing, as well:

Focus on primary competency:

Subsequent to saving costs by outsourcing, one of the major reasons why insurance businesses outsource their back office is to pay attention to their primary competencies.

Accessibility to high-quality work:

Outsourcing has enabled insurance companies in obtaining top-quality work at affordable costs. Having an outsourcing company managing your business operations results in better service and support.

Allocating in-house resources on other crucial tasks:

Insurance firms must have their in-house team concentrate on what matters most for their company. By outsourcing insurance services, firms have a lot more time and money in their hands to expand their business further.

Streamlined processes for time-intensive activities:

Investing a lot of your time on things that don’t really impact your company’s net profit is a waste of your money, efforts and time. By outsourcing such tasks, insurance businesses can maximize their efficiency and streamline internal processes.


Today’s global economic setup is brimmed with complexities. Insurance businesses must adapt immediately to such changes. They ought to have the capability to enhance or downsize their operations in accordance with the changing market dynamics. The basic nature of outsourcing and the way in which it is utilized has immensely changed. The below-mentioned points depict how insurance process outsourcing has evolved over the years:

Outsourcing complicated tasks:

So as to make the most from the talented work pool globally, insurance businesses nowadays have started to outsource even their most intricate tasks to offshore companies. Complicated back-office management tasks are contracted out to firms that engage top-notch and experienced people to work on those projects.

Core business tasks are outsourced, as well:

Core business tasks refer to activities that involve close interaction or association with customers. Customers are lifelines of any insurance business. There was a time when companies used to think that outsourcing customer service tasks to third-party vendors were not such a great idea However, things have changed now and these days one of the most sought-after outsourcing services is customer support.

Small and mid-sized insurance businesses join the trend:

Earlier, only large-scale businesses preferred to outsource. However, these days, even small and mid-sized firms have joined this trend. This has helped them to grow and excel, tremendously.

Other developing nations have become a part of outsourcing:

Even though India continues to be a pioneer with regards to the most-preferred outsourcing destination since the 1990s, in the recent past, many other countries have also emerged as outsourcing service providers.

Planning to outsource your insurance services like policy management, commissions management, customer support and claims administration to an offshore company? Your search ends here at Insurance Support World. We are pioneers in the insurance sector. Email us at to know more about our offerings.

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