Why outsource?

Worldwide, the insurance sector has lagged behind other industries in outsourcing non-core business operations. However this trend is changing as more and more insurance companies recognise that BPO (Business Process Outsourcing) gives them access to the process efficiencies and cost effectiveness of best-of-breed partners.

A recent study by Morgan Chambers of 100 FTSE companies in the United Kingdom showed that companies that used outsourcing enjoyed a 5% increase in share value over companies that didn't. Another study by US analyst Stern Stewart produced similar results. In North America, the compound growth in BPO between 2003 and 2006 was 15% and expectations are that this will increase to 20% in 2007. Major outsourcing deals also occurred last year in Europe and Asia. BPO involves the transfer of one or more complete business processes or entire business functions to an external service provider with special expertise to manage people, processes and technologies.

Life Administration Services (LAS) provides BPO services to insurers in Australia and New Zealand that will allow them to grow and remain viable in a very competitive risk market and to provide their customers with outstanding policy administration.