This was the main finding of a new survey conducted by Otter Risk Solutions, the underwriting and claims risk management subsidiary of Marlborough Stirling.
A clear majority (87%) of those questioned* stated that quality of service was either very important or important in their decision to outsource. The survey also revealed maintenance of agreed service standards (96%), integrity of the service provider (93%) and speed of service (71%) to be vital parts of the overall outsourcing proposition.
In addition, 96% of respondents stated that compliance with relevant legislation and regulations was important or highly important.
Although cost savings achieved through outsourcing are seen as vital to the decision making process, its importance was slightly lower with 60% of respondents saying it was either very important or important.
Graham Spittles, managing director of Otter Risk Solutions, said: “The survey results reinforce my view that outsourcing represents a significant and permanent shift in the life company business model. Concerns around outsourcing underwriting and claims are receding as life companies see real evidence of an improvement in service standards coupled with the provision of a quality service that our clients can rely on.
“The fact that critical business functions, such as underwriting and claims management, are entering into the outsourcing fold is testament to both the pressure life offices are under and the real value of the quality outsourced service that Otter Risk Solutions can deliver.”
