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Insurance Business | 01 Sep 2014, 08:59 AM Agree 0
A major financial consultancy firm is controversially advising insurance companies to outsource claims where appropriate, as part of five dimensions that would result in improvement to the claims function.
  • Walter A Nodelman | 01 Sep 2014, 11:36 AM Agree 0
    When I telephone to an INSURANCE CLAIM center and I hear an accent from someplace "OFFSHORED", -- my immediate reaction is to demand that my Insurance Policy be cancelled, effective on the last day of next month. On the first workday of the following month -- send me a check containing my unearned Premium pre-paid to the OFFSHORING insurance company.

    I flee from "OFFSHORED" with enthusiasm.
  • Greg Cottrell - Insurance Professional Dinosaur | 01 Sep 2014, 01:15 PM Agree 0
    There are already some very good claims management companies, particularly those with modern software capability.
    However, will the modern software "in Australia" be more or less competitive to the cost of overseas labor?. The new era of insurance being displayed in Australia is "cost of expenses before quality service".
    For those in the industry with their head in the sand, which is the majority unfortunately, we are headed to a banking model which means "no customer control or competition", this also means no "Broker" control other than that of a "agent of the insurer".
    Who is then going to be the advocate for the insurance consumer, lawyers...........?
  • Tony Jackson | 01 Sep 2014, 01:36 PM Agree 0
    Firstly, the idea that loss adjusters have claims management skills is no longer certain. Claims assessing skills are at an all-time low in the Australian market, driven down by insurer's cost cutting.
    Secondly, claims delivery is the most important service delivered by an insurer. It's the reason for their existence. Why would you consider outsourcing your principal product to adjusters, or Manila or Mumbai or anywhere else? Unless, of course your business was being run by accountants.
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