Insurance outsourcing

Outsourcing is a vital component to the growing division of labor, engulfing all societies. Some countries are inherent with the ability to outsource their business services to suppliers outside the nation, a process known as off shoring or offshore outsourcing. Outsourcing needs intelligent and ingenious minds to figure out the optimum and optimized solution.
Nowadays outsourcing is one of the hottest trends in IT services. In this context, India and China are considered to be the two most popular countries which are known for low cost outsourcing. Both countries produce over 200,000 engineers and science graduates each year.

Some of the reasons of outsourcing Research & Development works to India and China are:

1. Cost-saving: They offer relatively lower over-all cost of services like reducing scope, defining quality levels, repricing, re-negotiation, cost re-structuring.
2. Improved quality: They help achieve a step change in quality through contracting out the service with a new service level agreement.
3. Access to talent: They have access to a larger talent pool and substitute source of skills, particularly in science and engineering.
4. Capacity management: They have an enhanced method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
Factors like globalization, deregulation, increased competition, inability to differentiate products, pressure to reduce costs by improving operational efficiency and even terrorist attacks have coerced the insurance companies to undergo drastic changes in its policy systems. This transmutation has in turn contributed to the growth of the insurance industry in the last few decades.
IT field defines outsourcing as either commissioning the development of an application to another organization (usually a company that specializes in the development of this type of application) or hiring the services of another company to manage all or parts of the services that otherwise would be rendered by an IT unit of the organization (this might not include development of new applications).

Insurance Outsourcing Services provided by most of the companies include a range of services:
• Account settlement
• Acquisition and conversion
• Business management and ongoing administration
• Business transition
• Claim document imaging
• Claim eligibility and estimation
• Claim setup
• Claim support and auditing
• Claims-only administration
• Disbursement
• Due attentiveness and planning
• Fast tract adjudication
• Financial reporting
• Full claim settlement
• Life, health and annuity administration and customer services
• Modernization of legacy applications
• New business and underwriting
• Reinsurance administration
• System consolidation and conversion
By offshoring insurance claims administration, companies can focus on their core business, improve competitiveness and overall performance. Insurance claim processing needs cover everything from damage assessments to documentation, claims submissions, and claims settlement.
In an insurance claim entry, a person can file a claim and get benefits in the event when any damage has occurred to any of his valuables. Depending upon various circumstances and the agreement signed, the insurance company may or may not approve the claim.
Through efficient insurance claims processing, companies recognize additional savings through lower cost of sales. This ultimately promotes pricing flexibility and creates new business opportunities. Apart from saving operational costs, companies can also improve customer service, which leads to prolonged maintenance of customer relationship and higher profits.
By outsourcing insurance services, a client is freed from the time-consuming and debilitate task of settling insurance claims. In this manner, the client benefits by being able to concentrate more on achieving their primary business goals and objectives. If not done properly, claim settlements can get stalled in legal action. In some instances, certain communication channels are opened with appropriate parties to ensure that the claims are settled in the least possible time.
Majority of the insurance claims support services constitute expert team of cost consultants, insurance claims specialists and third-party insurance review arbitrators. They accelerate all claims settlement processes and ensure that all the potential barriers are removed. Some companies offer a strong financial value proposal for insurance solutions, along with proven delivery and flexible approach.

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