The stubbornly soft insurance market, coupled with the deepening economic recession, has agents and brokers scrambling to find ways to streamline operations, give clients more face time and focus on prospecting for new business. Yet while many of their insurance carriers have already embraced outsourcing, agency principals have been more skeptical about taking the plunge–but that is now changing.

A growing number of agency owners and managers are outsourcing back-office services such as policy-checking, claims-reporting, billing and loss summaries.

Unlike insurance companies, agencies have not outsourced customer service functions–seen as one of their core functions in maintaining personal contact with clients. Instead, they've opted to farm out routine back-office tasks so they can do more of what they do best, which is sell and service customers face-to-face.

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