Survey says…
by Sean Dermody
August 2006

Hause Actuarial Solutions would like to thank all of our clients and friends for their time and their tremendous response to our recent survey concerning the utilization of outside resources for performing policy form drafting & filing duties. We sent out over 600 surveys over the past few months, and are very pleased with the quality and quantity of the feedback that we received. So, without further ado, here are the results of our survey.

Our survey revealed that 69% of respondents frequently or from time to time outsource their policy form drafting and filing duties. Of those respondents that do use outside sources, 37% said that they do so due to the workload their staff is under, 27% due to expertise that an outside firm can provide, and 20% due to an emergency need.

On the flip side, 31% of respondents indicated that they never outsource policy form drafting and filing tasks. The top two reasons why these respondents indicated they do not outsource were cost (too expensive) at 29%, followed by the fear that they will not be able to control the process or project at 21%.

The final question on our survey asked for the top two factors they would consider when selecting and outsourcing partner. The responses to this question indicated that 36% believe that experience is the most important consideration, with cost finishing a close second at 28%.

What was learned from this exercise?
We learned that the majority of insurance companies who responded to our survey do hire outside consulting firms to perform policy form drafting and filing projects for them. They do so because of the workload of their current staff, as well as the urgency of the need. Furthermore, they select their outsourcing partner based on competency (experience), and the cost associated with providing the service.

We also learned from our survey that when insurance companies do not outsource compliance duties it is because they perceive the cost as being too high, and fear the results of the service as possibly being unsatisfactory due to the lack of control they may have when allowing an outside firm to do the job.

Is this really important?
It should be! Too often, businesses develop products and services based on what they think their target industry needs. They then assume how and why that industry makes their business decisions. We decided that since we value our clients, and the industry we serve, we didn’t want to make the same mistake. We want to be confident we are providing the right service at the right time for the right consumer. It is only appropriate to do this based on direct feedback from our industry peers.

If you would like to discuss the results of our survey in more detail, or find out how we are putting what we have learned from it into motion, please contact me directly. You can reach me toll free at (877) 685-0180 or send me an email at seand@hauseactuarial.com. I look forward to hearing from you.

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