Best Innovative Underwriting Services, Inc.
BIUS, Inc.


Best Innovative Underwriting Services, Inc.
21060 Centre Point Parkway
Santa Clarita CA 91350

Phone:
(661) 255-0112
Fax:
(661) 255-8373
E- mail:
pramotar@biusinc.com


How outsourcing could have prevented layoffs

by Patrick Ramotar


The following story is true. The name of the company and its location have been changed out of respect for our client. However, this scenario is not uncommon. We have seen far too many of our clients and prospective clients live through similar experiences. Therefore, we thought this would be an appropriate story to share with our readers.

The Widget Life Insurance Company is located on the East Coast. It had always been their policy to avoid outsourcing what they considered their core competency, underwriting. Their avoidance was based on the belief that outsourcing delays the handling of cases. Widget underwriting executives pride themselves on their underwriting decisions and the offers they provide to their agents. Outsourcing companies would not be able to quickly assimilate their philosophy and approach, or so they believed. Thus, they felt that sending work to another company would alienate their agents. It was also assumed outsourcing would lead to frequent appeals to their underwriters for second opinions.

Widget Life Insurance came to us because they received a huge influx of new business that required immediate handling. It was their plan to use BIUS, Inc. for a short time until they could adequately beef up their staffing. Patrick Ramotar, BIUS Inc. CEO, suggested that rather than immediately hire several new underwriters, they work with BIUS, Inc. for a period of six months to ensure this new volume of business would be sustained. Should their volume fall, the need to downsize would not be an issue. However, prior to initiating discussions with BIUS, Inc., the senior management of Widget had already made the decision to hire underwriters and support staff.

Widget began using BIUS, Inc. in March. In June, we were informed they had already hired underwriters and were training them. They reduced the volume they were sending us in order to have cases to acclimate the new underwriters. It was not more than sixty days later, that we learned their business had dramatically slowed to the point where their high-salaried underwriters were handling no more than 10 cases each per day!

Was Widget satisfied with our work? Absolutely! The column to the right contains the actual letter we received from their Chief Underwriter. In addition to providing Widget with 24-hour turnaround and quickly adapting to their procedures, we established our own file-tracking program. Not only were we able to track their files in our office, but routinely, we were able to provide them with information to locate files in their own office. We constantly impressed them with how much we kept on top of their work and knew exactly where files were in our office and theirs. They were also equally impressed with the input of our Medical Director on the cases we referred. The allowed them to free up their Medical Director.

When a new product takes off and its future is at least somewhat unpredictable, contact BIUS, Inc. If a new product fails to meet its financial projections, we may save your budget and enable you to retain much of the confidence of your Board of Directors

BIUS, Inc.