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06 Mar 2009
Service and claims recovery standards suffer when businesses go into run-off and insurers should be outsourcing their legacy business, according to a survey by Xchanging.
The survey, conducted at the recent ARC Congress in London, revealed that four out of five insurance professionals believe that service and claims recovery standards suffer when businesses go into run-off. In addition, 81 percent of those surveyed also said that legacy business should not be looked after in-house but should be outsourced to a specialist.
Julie Lynch, Group Service Director at Xchanging, said: "The majority of service practitioners surveyed agreed that legacy business should be outsourced. Current economic demands make it increasingly difficult to justify internal costs associated with ineffectively managed run-offs, particularly when reputations may have been sullied by downgrades from rating agencies. Fall-out in the wider financial arena is likely to offer plenty of opportunities for run-off experts to apply their skills."