Outsourcing reaches core functions

Insurers must take a more dynamic and global approach to sourcing their core functions, according to business analyst Datamonitor.

According to Anders Maehre, financial services technology analyst at Datamonitor, insurance underwriting and claims processing will increasingly be taken offshore, alongside call centre and application services.

He said: “While the benefits of offshore outsourcing are well documented – lower costs, higher quality to name but a few - its use has remained mostly limited to certain function areas. Whilst this immature view remains the primary perception of offshore outsourcing it is developing rapidly in parallel with the growing acceptance of offshore services provision.”