Outsourcing In Insurance Industry
Group 12
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Agenda
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Value Chain of the Insurance Industry
Key Drivers of Outsourcing
Various Service Providers from India
Companies that Outsource regularly to India
Processes in the Industry
Outsourcing Model
Compliance Needs
Risks and Risk Mitigation
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Value Chain of the Insurance Industry
Product Development
Marketing
Administration
Asset Management
Claims Management
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Key Drivers for Outsourcing
Focus On Core Processes
Speed To Market Minimize Risk
Better quality Availability of
Credible service providers
Cost Benefits
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Various Service Providers In India
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Insurance companies that Outsource
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Processes
Policy pricing
Marketing activities
Product Planning
Business analysis
Claims evaluation, examination and litigation
Performance Management
Financial statement analysis
Investment functions
Reinsurance
Portfolio analysis and decisions
Compliance
Agency Management
Forms design
Voice Support via call centers
Forms data entry
Support to agents/ policyholders
Account reconciliation
Accounts payable and receivable
Premium refund
Policy owner services
Claims registering
Payroll processing
Technology & Maintenance
Core
Pro
cess
esN
on Core Processes
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Process Complexity GraphRising up the value
chain
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Outsourcing Model INSURANCE INDUSTRY
OUTSOURCING
ITO
BPO
KPO
Service Segment Services Offered
• Application Maintenance & Development• Infrastructure Management• Data architecture• System Deployment and Integration• Product design• Network and desktop outsourcing
• Premium accounting• Policy owner services• Support functions• Data entry• In bound and outbound call support• MIS
• High end Claims Processing • Annuity & Pension products process• Business analysis and technical design• Underwriting• Portfolio analysis and decisions• Corporate Treasury
IT Services
ITES
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Compliance Needs
Insurance
HIPAA
BASEL II
SOX ActUS Patriot Act
Gramm-Leach-
Bliley Act
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Risks
People• Attrition• Lack of knowledge transfer• Errors• Omissions
Technology• System down time• Network down time• Poor IT infrastructure• Data theft
Legal• Breach of contract• Client data pilferage• Sub contracting to small
players• Plagiarism of IP rights
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Risks MitigationPeople• In house medical center and provision of nutritious food• Implement information security standards; ISO 17999 and BS 7799• Provide training and clearly define metrics for knowledge transfer
Technology• Well equipped infrastructure with setup for back up• Effective fire walls• Regular system audit
Legal• Ensure fraud detection and prevention system by having strict security policies• Follow up or review of control mechanism and audit by third party• Appoint legal advisor or consultant in drafting SLA and strictly adhere to norms
of SLA
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• Higher-end processes such as underwriting, actuaries and analytics
• Average billing rates upwards by more than 25 percent in the next two to three years
Future Trends
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Thank You !!!