Risk and the Outsourcing of Risk Management Services: The Case of Claims Management |
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| Authors: | Peter C. Young John Hood |
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| Affiliation: | Peter C. Young is the E.W. Blanch Sr. Chair in Insurance at the University of St. Thomas, Minneapolis, MN.; John Hood is a lecturer in Risk Management at Glasgow Caledonian University, Scotland. |
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| Abstract: | Outsourcing of risk management activities is a well-established practice, involving a range of services from actuarial audits to loss control training to risk financing management to claims administration services. Surprisingly, little work has been done to examine the risks associated with outsourcing risk management activities. This article examines the outsourcing of claims management services by reviewing the research on outsourcing risks and by interviewing leading practitioners. In doing so, the authors draw some provisional observations about risks and risk costs associated with outsourcing claims management services—observations that seem generalizable to all risk management outsourcing. |
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