Surge in Support for Outsourcing Claims – Poll

The outcome of our latest poll paints a very different picture to when we asked you the same question last year.

As we go to press, two in three advisers/colleagues (67%) agree they’re open to outsourcing their clients’ life insurance claims. Only one in five (21%) disagree, with the rest unsure.

Eleven months ago, a modest one in three (33%) were open to life insurance claims outsourcing, while the majority – 56% – were against. While we never claim any scientific rigour around our poll results, we’re nonetheless confident the outcome of today’s poll indicates a change in thinking has definitely taken place in the mind of a lot of financial advisers and those who support them:

When we asked you this question in October last year, we outlined three arguments made by those supporting the outsourcing of client claims to external specialists:

• The ever-growing complexity associated with submitting a claim and achieving a successful outcome for the client, especially given the sometimes lack of expertise possessed by non risk specialist advisers and generalist/holistic practices
• The prolonged delays associated with many claim submissions and the associated time and effort required of the adviser and support team members
• Mitigating any potential action brought by non-sector legal firms engaged by the client, where the advice business or dealer group may be subject to litigation over the role it played in a declined claim outcome

Today’s poll was motivated by our report last week on the time and efficiency successes experienced by specialist service firm TPD Claim Support (see: Upfront Due Diligence Re-Setting Claim Times).

Perhaps the past eleven months has given more advice practices pause for thought in considering the merits of outsourcing some or all of their clients’ life claims processes –  possibly as part of a broader search for efficiencies within their businesses.

For whatever reason, however, it would seem that outsourcing life insurance claims has become a more acceptable solution for more financial advice firms across the country.

Does this assessment apply to you and your business? Are you ‘on-board’ with outsourcing your clients’ claims? Or is this still a bridge too far when it comes to how you view your own commitment to your clients and to how you serve their needs at claim time?

Our poll remains open for another week – and as always, we welcome your thoughts…