A continuing talent crisis could threaten insurers' plans of resurgence. Studies estimate that the availability of underwriters has fallen significantly in recent years. And given the industry's financial constraints, it cannot afford to spend on training fresh talent—pointing to a severe shortage of underwriting skills.
However, the fact of the matter remains that underwriting is crucial to the launch of new products in the industry. Since companies cannot effectively develop talent, they are outsourcing underwriting in order to meet their needs with promising results—but only when done the right way.
Being Wise About Insurance Outsourcing
The key to driving value through insurance outsourcing is to be very clear about what you want to outsource. An insurer should scope out the range and nature of processes and then identify bottlenecks that could benefit from extra help. When outsourcing underwriting work, it is crucial that you look for experienced hands that have the talent to deliver what you need.
Some companies only offer tele-underwriting, while others offer a vast array of services. The outsourcing provider should offer precisely what you need, with appropriate levels of customization, scalability and adaptation when needed. With the right partner, insurers can focus on the kind of underwriting work they should outsource: pre-underwriting or remote-underwriting. In either scenario the insurance company stands to benefit as it can free up core staff to focus on important functions like risk management and resource utilization.