One of the most frequent questions I get is about what exactly is claims outsourcing in insurance. Very simply, claims outsourcing in insurance refers to the practice of partnering with a third-party provider to handle all or part of the insurance claims process. This can include services such as:
- First Notice of Loss (FNOL) intake
- Call center support for claims inquiries
- Claims processing and adjudication
- Desk adjusting and subrogation
- Customer communications and documentation handling
Whether to provide these services in-house or outsource is a big question. But doing so can reap strategic benefits. Outsourcing helps carriers, MGAs, and insurtechs manage costs, streamline operations, and scale resources, without compromising the quality of service delivered to policyholders.
Need more info? Let’s dive into some of the drivers affecting this decision.
What’s Driving New Expectations in Claims Outsourcing in Insurance?
In our recent Insurance Operations Leaders Trends Report, 83% said outsourcing was extremely or very important to their future success. But determining what to outsource and what to keep in-house is a big decision; about 20% say they are anxious or unprepared for it. But the world around us often has other ideas. Here are some of the factors driving outsourcing decisions:
1. More Frequent Catastrophic Events
With extreme weather events becoming more common, insurers must respond to sudden spikes in call volume and claims activity, often with little notice.
2. Rising Customer Expectations
Policyholders expect faster, more personalized service, especially during moments of crisis. Long hold times, delays, or inconsistent communication can quickly erode trust.
3. Pressure to Control Costs and Churn
Claims and operations leaders are under pressure to reduce costs while protecting the policyholder experience. Poor service during claims is one of the top drivers of customer churn.
4. Need for Compliance and Brand Alignment
Even during high-volume periods, outsourced teams must represent the brand accurately, follow compliance protocols, and maintain consistent communication standards.
These shifting expectations mean outsourcing can’t just be about filling seats or answering phones. It needs to be about delivering quality, consistency, and peace of mind.
How Claims Outsourcing in Insurance Can Help, and What to Look for in a Vendor
Insurers turn to us for many reasons, but the two key factors have to do with reducing costs and ensuring policyholder satisfaction. Often they face challenges staffing up for seasonal surges. Or they want to focus their internal resources on other programs. Outsourcing claims processes can help insurers:
- Scale quickly during surge periods
- Reduce overhead and staffing costs
- Improve turnaround times and policyholder satisfaction
- Increase flexibility without compromising compliance
But not all outsourcing partners are equal. Many long-time customers have come to us after a bad experience. Here’s what to look for:
- Insurance-specific expertise
- 100% onshore service to ensure the best policyholder experience
- Empathy and brand training for every agent
- Proven surge-readiness and staffing scalability
- Transparent reporting
- An easy AI on-ramp for insurers
A vendor that checks these boxes is more likely to deliver great care to you and your policyholders. But we realized that wasn’t enough and recently launched some new services to better meet the needs of insurers like you.
How Covenir Is Meeting the Need with Market-Exclusive Products and a Guarantee
There are a lot of options out there for outsourcing partners. But the industry needs more than capacity, it needs accountability and empathy. That’s why we are investing in industry innovations to help insurers manage claims better, more cost effectively and with greater policyholder empathy.
- Covenir IntelliClaims Advantage brings FNOL, desk adjusting and subrogation together under one seamless, scalable call center solution. Resolve low-complexity claims in days, not weeks while reducing costs up to 60% and easing internal workloads. With licensed, onshore professionals and our exclusive Call Surge Guarantee, you’ll stay in control even when call volumes spike. Covenir’s Call Surge Guarantee is the only surge-ready call center outsourcing service in the market backed by a formal experience guarantee.
- Covenir IntellAgent brings the best of conversational AI and onshore live-agent call center expertise to FNOL and Claims call center experiences, powered by our partnership with Liberate, the leader in conversational voice AI for insurance. With IntellAgent, you can invest in AI without the risk by outsourcing with leaders in onshore call center outsourcing and conversational AI for insurers.
- Covenir AgentCoach provides live AI call guidance and on-screen feedback for agents to ensure Consistent quality, compliance, and policyholder satisfaction without adding overhead.
When you partner with us:
- Get consistent policyholder care, even during catastrophic events, guaranteed and backed by a 5-point quality plan
- Save up to 60% with call center, desk adjusting and subrogation services all under one roof
- Receive a financial rebate of up to $500/year if we don’t meet expectations during a qualified call surge
- Get the benefits of AI call center technology without the risks
No other vendor in the space offers this level of commitment to your brand and your policyholders.
Final Thoughts
As expectations rise, claims outsourcing is no longer just about saving money – it’s about strengthening customer trust, staying compliant, and responding with agility when it matters most.
If you’re exploring claims outsourcing solutions, choose a partner that delivers more than capacity. Choose one that’s built for consistency and willing to put it in writing.
Ready to future-proof your claims support? Let’s schedule a 15-minute strategy session.