Why would any insurance company outsource their sacred function of underwriting?
That was a question I put to Mark Zuwala Director of Underwriting Services for Team Focus Insurance Group in the latest episode of The Assignment of Benefits Podcast.
While underwriting remains a core insurance function, strategic outsourcing can provide significant competitive advantages. Here's why some carriers consider this approach:
Economies of Scale
- Access to specialized expertise without the overhead of full-time staff
- Shared technology and infrastructure costs across multiple clients
- Reduced training and compliance management expenses
- Lower operational costs through standardized processes
Flexibility to Scale
- Rapid expansion into new markets without hiring constraints
- Quick contraction during market downturns without layoffs
- Seasonal capacity adjustment, especially during catastrophe seasons
- Ability to test new products or markets with minimal risk
Startup Advantage
- Launch operations with minimal fixed costs
- Focus capital on core differentiators rather than operational infrastructure
- Faster time-to-market with established underwriting processes
- Access to experienced underwriters without recruitment challenges
- Maintain lean organizational structure while scaling business
This strategic approach allows insurers to maintain underwriting control while leveraging external expertise and operational efficiencies.
About the Guest
Mark Zuwala
- Current role: Focus Insurance Group (Underwriting Service Provider)
- Areas of expertise: Insurance underwriting, service provider operations, quality assurance
- Notable achievements: Leadership in developing effective underwriting partnerships with carriers
- Background: Extensive experience in insurance underwriting and operational management
Key Topics Discussed:
1. Underwriting Service Provider Role
- Complex risk handling capabilities
- Client relationship management
- Quality assurance processes
- Partnership development with carriers
2. Quality Control and Auditing
- Consistent auditing processes
- Structured audit programs
- Constructive feedback mechanisms
- Communication effectiveness
3. Operational Excellence
- Balance between automation and human judgment
- Complex scenario management
- Partner evaluation criteria
- Quality assurance protocols
4. Storm Season Management
- Real-time update protocols
- Communication strategies
- Operational adaptations
- Partnership coordination
5. Partner Evaluation Process
- Experience assessment
- Quality assurance metrics
- Decision-making criteria
- Partnership success factors
Resources Mentioned:
- Focus Insurance Group services
- Underwriting quality assurance programs
- Storm season operational protocols
- Client support processes