The decision to outsource can be a difficult one, but sometimes all it takes is a littlebit of research. Mark Burnam, claims technology director for the Kemper Auto and Home Group (KAHG), a division of Unitrin, says the decision to outsource its first-notice-of-loss calls wasnt too difficult once the research was complete. Did we want to spend money building or buying software to support the intake process? he asks. The answer was no, not when KAHG could leverage the technology investment made by the outsourcer it chose to handle the call center.

Of course, no decision to outsource is easy, no matter what size the company. But knowing what your company does well and what others do better is a good place to start, and thats why Sutter Insurance Company chose to outsource its technology department. Fiserv, the company Sutter chose, had a lot of economies of scale we couldnt duplicate at our size, says Diane Kleinecke, vice president of finance and accounting for Sutter.

Finding the right fit with an outsourcer is key to any long-term arrangement for insurers. Greg Powers, vice president of sales for First Notice Systems (FNS), the vendor chosen by KAHG, believes insurers need to focus on three areas of concern when contemplating a deal. One is program knowledge, says Powers. Will these [outsourced] reps be able to understand your company, your culture, specific scenarios your [people] go through? Second, will they be able to provide the same level of customer service? The third is, will they have controls in place? If the boss asks what is happening, you need to give answers with details and data that encompass the [outsourcing] experience. It is critical any outsource provider has good answers for all three of these areas.