What is co-sourcing and why are some insurers choosing a co-sourcing operating model?
Co-sourcing refers to an operating model that enables insurers to retain those functions that are core to their business with internal staff using vendor-provided software, while selectively outsourcing certain functions that could be better performed through improved technology, automated processes and/or external specialized expertise.
Insurers have traditionally licensed third-party software or built proprietary applications that are installed and managed locally. While cloud-based solutions are becoming more commonplace, moving from on-premise software to a fully-outsourced model is sometimes too drastic of a change on an insurer’s current operations and existing staff. Co-sourcing allows insurers to gradually ease into this transition taking into consideration their capacity constraints, strategic objectives and optionality to internalize or outsource more functions over time.
What are the benefits to co-sourcing?
Rigid, one-size-fits-all operating models don’t work for every insurer. Factors like size, investment portfolio complexity, jurisdiction, culture, and business line (Life, Health, P&C) may require varying accounting bases and methods, reporting requirements and timing of deliverables that align better with a more flexible and adaptable operating model. With co-sourcing, insurers can benefit from standardization and simplicity, while retaining flexibility to meet their unique needs today and as their business changes over time.
Take a closer look below at a number of ways you can co-source your investment operation model with SS&C, by functional area or asset type. If you would like to discuss your specific co-sourcing needs, please contact us.
