Around 30% of insurers and brokers are actively outsourcing core activities such as claims handling and call centres, according to a new report.
The report, conducted by Insurance Times and motor specialist Claimsplus, found that 64% of companies using outsourcing delegated claims handling.
In addition to outsourcing IT and employee benefits, 18% of the companies canvassed said they had outsourced call centres.
This was a popular choice because of the high investment and personnel costs involved.
Annual spend on outsourcing varied according to the size of the company, the report said. Of those companies that outsourced, 37% spent less than £10,000 and 31% more than £100,000 every year.
The report findings should hearten those loss adjusters and legal firms fighting to retain their places on insurers' panels.
Around 63% of insurers said they would change or appoint their supplier panels at least once a year.
Claimsplus head of sales and marketing Nigel Rolfe said: "The responses to this survey reflect the changes in the industry and the way in which insurers are seeking to achieve competitive advantage."