What Insurance Tasks Should Be Automated vs Outsourced?
In the fast-evolving world of insurance operations, deciding what to automate vs what to outsource isn’t just a tech question-it’s a strategy. Whether you’re running an MGA, carrier, or agency, getting this right determines your cost structure, efficiency, and scalability.
The Core Difference: Automation ≠ Outsourcing
| Term | Definition | Best Use Case |
| Automation | Using AI or software to execute tasks with zero human touch | Repetitive, rules-based tasks |
| Outsourcing | Delegating tasks to skilled people (onshore/offshore) | Judgment, complexity, carrier nuance |
Tasks That Should Be Automated
These are high-volume, rule-based, and time-sensitive:
Email Intake & Classification
Use AI to detect COIs, endorsements, cancellations, or new biz automatically
Document Triage (OCR + Tagging)
ACORD forms, binders, loss runs-auto-read and route them
Submission Routing
AI can push LOB-specific files into quoting queues
FNOL Classification
AI reads first notice emails and routes to the correct claims desk
Renewal Calendar Triggers
Based on policy term, renewal data, and carrier lead times
Use Selectsys AI automation here: we’ve already trained GPT workflows to handle this with >95% accuracy.
Tasks That Should Be Outsourced (BPO)
These require insurance knowledge, judgment, or carrier interaction:
- Certificate of Insurance (COI) Generation
- Endorsement Processing
- Policy Issuance
- Premium Audits
- Accounting + Collections
- Carrier Downloads Matching
- Claims Entry + Setup
- Reinstatements and Cancellations
These are time-consuming but don’t need your internal team’s brainpower.
Let Selectsys handle these inside your AMS360, Applied Epic, or PAS. We’re already trained on your system.
What About Hybrid Tasks?
Some workflows benefit from both automation and BPO:
| Task | Automation Part | BPO Part |
| Quote Prep | AI fills forms, extracts data | BPO reviews and submits |
| Renewals | AI triggers review | BPO contacts broker / insured |
| COI Requests | AI detects request email | BPO generates certificate |
Final Rule: Let AI Triage, Let People Execute
Don’t burn human capital on inbox sorting.
Don’t trust AI to fix a messy endorsement.
Let each side do what it does best.
Start With a 30-Day Pilot
Let AI handle the classification. Let Selectsys handle the execution.
COIs, audits, claims, renewals-we’ll show you what should be automated vs outsourced in your world.
FAQ
How do I know if a task is ready for automation?
If it’s repetitive, rule-based, and high-volume-yes. If it’s variable, judgment-heavy, or tied to compliance—outsource it.
Can I use both automation and BPO at once?
Absolutely. In fact, that’s the Selectsys model: AI + humans working together in your system.
