Insurance Services Outsourcing: Keep vs Delegate
Outsourcing works best when authority stays in‑house and execution moves to specialists. Use this RACI to design a safe handoff.
RACI by Domain (Sample)
- Submissions: R: BPO; A: UW Manager; C: Product; I: Distribution.
- Underwriting Prep: R: BPO; A: Underwriter; C: Actuary; I: Broker.
- Policy Servicing: R: BPO; A: Ops Lead; C: Compliance; I: Insured/Agent.
- Billing/Commissions: R: BPO; A: Finance; C: Compliance; I: Producers.
- Claims FNOL: R: BPO; A: Claims Manager; C: SIU; I: Insured.
KPIs that Prove It’s Working
- Touch time, quote cycle, endorsement TAT, DSO, commission exception rate, FNOL handle time, QC accuracy.
How to Expand Safely
- Start with 1-2 workflows; add complexity only after SLAs/accuracy hit targets for 2 consecutive months.
FAQs
What should always stay in-house?
Risk selection, pricing authority, product changes, and large-loss decisions should remain in-house while execution moves to the BPO partner.
How do we avoid vendor lock-in?
Insist on documented playbooks, role-based access, and data portability, plus clear exit and transition clauses.
