{"id":222,"date":"2024-05-21T14:14:21","date_gmt":"2024-05-21T14:14:21","guid":{"rendered":"https:\/\/iqeq.com\/cy\/insights\/why-the-insurance-sector-should-consider-lift-outs\/"},"modified":"2024-08-16T12:23:49","modified_gmt":"2024-08-16T12:23:49","slug":"why-the-insurance-sector-should-consider-lift-outs","status":"publish","type":"post","link":"https:\/\/iqeq.com\/cy\/insights\/why-the-insurance-sector-should-consider-lift-outs\/","title":{"rendered":"Why the insurance sector should consider \u2018lift-outs\u2019"},"content":{"rendered":"
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The insurance industry is currently facing a sea of challenges, including macroeconomic uncertainty, the war for talent, and increased environmental disruption. Amid these challenges, insurers seek operational flexibility to ensure their longevity, scalability, and competitiveness.<\/strong><\/p>\n

The question of how best to manage back-of-house operations is natural in this context, and insurers typically opt for one of two paths: investing more heavily in their in-house administration teams and technology or outsourcing to a specialist third-party provider equipped to handle those functions on their behalf.<\/p>\n

While outsourcing has a long list of advantages<\/a> and is an ideal option for small to mid-sized firms, large insurers might prefer an alternative.<\/p>\n

In such cases, \u2018lift-outs\u2019 provide a valuable third option. This post will describe the basic function and benefits of lift-outs for insurers, including who should use them and why they\u2019re often the best option for large firms.<\/p>\n

What is a lift-out?<\/h2>\n

A \u2018lift-out\u2019 is the process of transferring an existing in-house team to a specialist provider while retaining the team\u2019s accumulated knowledge and experience. This allows the insurance company to reduce the need to maintain their HR, payroll, and other administrative functions, along with the management of the underlying internal processes.<\/p>\n

In essence, lift-outs combine the benefits<\/a> of in-house expertise with outsourcing efficiency.<\/p>\n

Why use lift-outs?<\/h2>\n

Many large insurers have established robust in-house teams with specialised knowledge, while similarly the technology and systems to manage their back-end processes may need capital investment to remain competitive. Lift-outs offer a way to maintain company-specific knowledge and provide access to state-of-the-art technology while allowing the company to scale back the cost of retaining personnel and enjoy many of the advantages of outsourcing.<\/p>\n

Rather than making internal teams redundant and phasing out in-house technology systems, lift-out providers can \u2018acquire\u2019 the insurer\u2019s team that supports the underlying business process and incorporate them into the service provider\u2019s ecosystem.<\/p>\n

This approach offers several advantages to insurers:<\/p>\n