Insurers advised to outsource legacy business
by Richard Kilner
Story link: Insurers advised to outsource legacy business
Xchanging has commissioned a survey which reveals that standards of service and claims recovery decline when businesses enter run-off, and that legacy businesses should be outsourced by insurers.
The survey was conducted in London during the ARC Congress and showed that four out of five of professionals within the insurance industry are of the opinion that when businesses go into run-off the quality of service and claims recovery suffers as a result.
A similar proportion believed that legacy businesses should be outsourced to specialists rather than being operated on an in-house basis.
Group service director of Xchanging Julie Lynch commented on the findings by saying that the present economic turmoil makes it difficult to justify the cost of running internal run-offs which can often be ineffective.
She went on to say that it is likely that run-off specialists will see numerous opportunities present themselves due to the economic turmoil.