Why Insurance Companies Outsource Claims Processing
Claims are the heartbeat of insurance. But handling them is resource-heavy, repetitive, and high-stakes. Many P&C insurers, MGAs, and wholesalers now turn to claims processing outsourcing to improve efficiency while keeping adjusters focused on decision-making.
What Is Claims Processing Outsourcing?
Claims outsourcing means delegating parts of the claims lifecycle to a partner. Commonly outsourced:
- FNOL (First Notice of Loss): intake via phone, email, or digital channels
- Data validation & document chase
- Claim file setup in core systems
- Vendor dispatch (repair shops, inspectors, adjusters)
- Reporting & compliance support
Why Insurers Outsource Claims Processing
- Speed: FNOL handled 24/7
- Cost savings: reduce in-house admin costs
- Accuracy: structured QA reduces errors
- Scalability: surge handling during catastrophes
- Customer service: faster claims = better policyholder experience
Risks & Mitigations
- Data privacy: require encryption, SOC2 compliance
- Loss of control: solved with SLA-driven transparency
- System integration: select partners experienced in Guidewire, Duck Creek, Origami
FAQs
What is outsourced claims processing?
Delegating intake, data entry, and file setup to a specialized partner while adjusters focus on adjudication.
Why outsource FNOL?
To ensure 24/7 intake, faster turnaround, and consistent documentation.
Can outsourced teams handle catastrophe surges?
Yes — outsourcing provides scalable bandwidth during peak claim events.
Improve claims turnaround with SelectSys claims outsourcing. Get a free consultation.
