Outsourcing insurance administration can free up a lot of time, but only when the boundaries are clear. Here is how we think about what a back-office team should and should not do for an agency.
Good candidates for outsourcing
Tasks that are repeatable, rules-based and can be checked against source documents are usually the best place to start:
- Preparing ACORD applications from information the agency supplies
- Issuing standard certificates of insurance from approved masters
- Checking issued policies against quotes and binders
- Preparing renewal files and tracking outstanding items
- Updating the agency management system and organizing documents
What stays with your licensed team
Anything that requires a license or a judgement call on coverage stays in-house. That includes binding coverage, recommending coverage, interpreting policy language for clients and any underwriting or claims determination.
Making it work
The agencies that get the most from outsourcing document each workflow, agree an escalation path for anything unusual, and review quality regularly in the first few months. Starting with one or two processes and expanding once they run smoothly is usually the safest approach.
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