For many companies one of the perennial questions and operational challenges is which part of the claims process to manage in house and which part to outsource.
For claims handling, the picture is complicated and dynamic. It is often based on the personal preference of a particular claims manager or CEO and the strategy can change a quickly as a name plate on an office door! By the very fact that the philosophy changes on a regular basis it means that the company concerned is unlikely to ever reach the optimum solution as it is in a constant state of implementing new processes.
There is no right or wrong answer to the insource / outsource debate. The key is identifying a medium to long term strategy and then developing processes and a supply chain that can support that but at the same time flex as the business grows and adapts.
Many believe that an outsource partner for certain aspects of the claims management process, does provide much needed flexibility and aids effective capacity management. No company can economically be staffed throughout the entire year to deal with peak or surge volumes levels.
An outsource partner can also provide valuable free ‘consultancy’. Without breaching contractual agreements an outsource claims partner will have process innovation and systems expertise and development that they share and can feedback to their clients which in turn helps both partners achieve a more efficient operating model and ultimately delivers better customer service.
Like it or not, if we are serious about year round quality customer service and keeping ahead of the competition, there will always be a place for an outsourcing partner to provide that much needed support at difficult and busy times.