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Insurance carriers were originally attracted to outsourcing and offshoring by the potential for significant cost reduction in back-office activities such as claim processing. However, as confidence in these arrangements has grown, as providers have become more sophisticated, and as insurers have faced a challenging economic and competitive landscape, it has become clear that efficiency improvement in the back office is not enough. Offshore providers can now offer many more value-added services cost effectively, and carriers are starting to take notice.


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