Right-Shore Model Will Mitigate Risks for Insurers
October 21, 2020 | Stephen Browne
The COVID-19 pandemic continues to show that insurers need to redefine their operations for better synergies between offshore and onshore resources, so they can be more scalable and adaptable in an unstable environment.
The right-shore model promotes best-fit, insurance-focused managed services and enabling technologies delivered in varied locations. The model provides the best combination of cost and efficiency, enabling organisations to flex and adapt to business and market changes. COVID-19 caught many insurers off guard as they had a large proportion of overseas roles that needed to be brought back onshore.
By placing the majority of resources and services in one or two regions, insurers increase their business continuity risk during times of adversity. For example, having a large proportion of resources based in lower-cost Asian locations resulted in insurers facing challenges of the availability of basic technology and connectivity tools, as people moved to home-based work in massive numbers during the pandemic. We are also now entering the monsoon season in some parts of the world, which puts those locations at risk of major weather events, and another type of potential business disruption.
Xceedance has a “follow the sun” right-shore model that enables the company to provide diverse and continuous services to clients 24 hours a day, 365 days a year. The company’s resources are based across multiple strategic geographies, so if one location is heavily impacted by unforeseen events, another can ensure business operations continuity for insurance organisations. The model is cost-effective, providing real-time dependability and value for Xceedance clients.
Xceedance has continued to grow in the current unstable market and several new clients have joined the Xceedance community. Client requirements and projects are being delivered in a fully remote framework, which was globally implemented at the onset of the pandemic. From March to July, the company’s HR team successfully onboarded more than 250 new team members internationally. Our growth across offices on four continents continues, even during these challenging times.
The right-shore model helps insurers build greater agility, scalability, and resilience, particularly during uncertain business conditions. A key benefit of right-shoring is that it promotes practical working relationships with nearby supplier or provider companies, enabling insurers to co-create opportunities within their markets.
Australian insurers need to seriously examine their operational models and consider whether they will remain viable in a post-pandemic market.
The right-shore model can fortify and sustain operations, no matter what circumstances lie ahead, domestically or globally.
Insurers must examine how the combination of legislative and regulatory changes will impact on customers, premium, profit, and data. Insurers need to evaluate whether their existing business model will be a good fit in the new environment, or if a right-shore model can help mitigate business continuity risk now and in the future.
Stephen Browne is vice president and country manager – Australia for Xceedance.