I would like to know if insurance agents in the US have been undercut by those who reside out-of-state or even out-of-country? The April 2, 2012 issue of TIME Magazine, in “The 97-lb. Recovery”, by Rana Foroohar and Bill Saporito, has this to say:
“[I]t will take 33 more months to restore the jobs lost in 2008 and 2009. Much of the reason for that trend lies with the unalterable forces of globalization and technology-induced job destruction, which are speeding up and disrupting a greater range of white collar jobs as software and global broadband connectivity improve. (INSURANCE AGENTS and X-ray technicians, your jobs are already being outsourced to India; paralegals, processing managers and investment analysts — you’re next.)”
Now, in view of the above, my question is twofold:
1) How accurate is the TIME depiction?
2) How does outsourcing impact or threaten the capacity to recruit when potential employees and professionals are increasingly wary of careers in which outsourcing is the trend? Is the insurance industry, like so many others, actually creating a disincentive for quality recruits to enter profession if and when the perception is that the entire industry is vulnerable to offshoring?
I would imagine the job of recruiting new talent becomes more difficult the more an industry is positioned to undergo radical and foreign-sourced transformation. It is already thought that STEM jobs, those relying on science, technology, engineering and math, are facing a US talent shortage, which has hastened the H-1B visa trend to insource foreign talent for US industry at a lower labor cost. What we don’t see happening are American business leaders and lawmakers connecting the dots — that the smartest people in the room are going to be difficult to capture if they don’t enter an industry where they feel the potential for income growth and job security is going the way of India, China and elsewhere abroad.
I’d like to see insurance industry professionals weigh in on whether they feel the effects of globalization have hampered their ability to remain competitive and/or to recruit high-quality candidates. I know someone who is considering a career change to that of an insurance agent and I’m wondering if it is worth the jump.
Thanks Dan for sharing the post. These are really good tips for someone who has little clue on outsourcing insurance process. I really appreciate your advice. Insurance BPOs even provide services like claims management, adjudication, remediation and fulfillment.
Dear Dan,
we want to start a Insurance Process outsourcing business in Bangalore to support North America region. Can you please share the entire guideline in terms of training the staff, certifying the staff to manage the Insurance Back office. also, what would be the list of training along with cost.
Hi Dan, I am Mika (Sr. Service Associate at Cogneesol), thank you for sharing this article. It’s a very sensitive thing for an insurance company to outsource their business back-office activities to a third party firm overseas. But, the thing is, once you’ve found an reliable outsourcing partner, nothing can beat you in the market.
Good Morning Mika:
My firm is considering outsourcing as an option in our future growth plans. Is Cogneeso an outpouring company? If not do you utilize outsourcing and as a result have a company that you would recommend that we consider?
I would like to know if insurance agents in the US have been undercut by those who reside out-of-state or even out-of-country? The April 2, 2012 issue of TIME Magazine, in “The 97-lb. Recovery”, by Rana Foroohar and Bill Saporito, has this to say:
“[I]t will take 33 more months to restore the jobs lost in 2008 and 2009. Much of the reason for that trend lies with the unalterable forces of globalization and technology-induced job destruction, which are speeding up and disrupting a greater range of white collar jobs as software and global broadband connectivity improve. (INSURANCE AGENTS and X-ray technicians, your jobs are already being outsourced to India; paralegals, processing managers and investment analysts — you’re next.)”
Now, in view of the above, my question is twofold:
1) How accurate is the TIME depiction?
2) How does outsourcing impact or threaten the capacity to recruit when potential employees and professionals are increasingly wary of careers in which outsourcing is the trend? Is the insurance industry, like so many others, actually creating a disincentive for quality recruits to enter profession if and when the perception is that the entire industry is vulnerable to offshoring?
I would imagine the job of recruiting new talent becomes more difficult the more an industry is positioned to undergo radical and foreign-sourced transformation. It is already thought that STEM jobs, those relying on science, technology, engineering and math, are facing a US talent shortage, which has hastened the H-1B visa trend to insource foreign talent for US industry at a lower labor cost. What we don’t see happening are American business leaders and lawmakers connecting the dots — that the smartest people in the room are going to be difficult to capture if they don’t enter an industry where they feel the potential for income growth and job security is going the way of India, China and elsewhere abroad.
I’d like to see insurance industry professionals weigh in on whether they feel the effects of globalization have hampered their ability to remain competitive and/or to recruit high-quality candidates. I know someone who is considering a career change to that of an insurance agent and I’m wondering if it is worth the jump.
Thank you.
Thanks Dan for sharing the post. These are really good tips for someone who has little clue on outsourcing insurance process. I really appreciate your advice. Insurance BPOs even provide services like claims management, adjudication, remediation and fulfillment.
Thanks Dan for sharing valuable blog I recently found it & have enjoyed reading it.
Dear Dan,
we want to start a Insurance Process outsourcing business in Bangalore to support North America region. Can you please share the entire guideline in terms of training the staff, certifying the staff to manage the Insurance Back office. also, what would be the list of training along with cost.
Please help.
Hi Dan, I am Mika (Sr. Service Associate at Cogneesol), thank you for sharing this article. It’s a very sensitive thing for an insurance company to outsource their business back-office activities to a third party firm overseas. But, the thing is, once you’ve found an reliable outsourcing partner, nothing can beat you in the market.
Good Morning Mika:
My firm is considering outsourcing as an option in our future growth plans. Is Cogneeso an outpouring company? If not do you utilize outsourcing and as a result have a company that you would recommend that we consider?
Thanks in advance for your reply and comment.