For decades, outsourcing helped insurers and agencies cut costs and scale. But in the age of AI, outsourcing is fast becoming a strategic disadvantage.
Manual processes, irrespective of headcount, have a time lag, are prone to error, create management overhead, and are challenging and costly to scale. AI is automating increasingly complex, expertise based tasks, delivering higher accuracy and decision quality at a fraction of the cost.
More importantly, incentives are fundamentally mis-aligned in outsourcing. Outsourcers make money by billing more FTE and reducing cost to serve! Stiff competition and fundamental business model challenges are leading to declining talent and delivery quality.
Many Insurers and Agencies are moving operations from BPOs to AI processing, achieving better service, operational control, internal IP creation, while reducing risk.
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