Outsourcing Won't Save You Unless You Own It

In a financial landscape ruled by scale, smaller insurers face a stark choice: adapt or disappear. 

For some, outsourcing has become more than a cost-saving tactic – it’s a strategic lifeline. But survival doesn’t come from handing over control. It comes from knowing exactly what to delegate, what to own, and how to hold partners – and yourself – fully accountable.

At Foresters Friendly Society, an SME life insurer managing around £35 million in premiums, outsourcing is our path to staying relevant in a financial ecosystem dominated by giants.

Competing with large institutions like Aviva and Phoenix on scale or cost is impossible. But we can be agile, efficient, and strategically sharp. That begins with outsourcing done well – and knowing exactly what not to outsource.

Every task we delegate is matched with internal ownership. In a session at CeFPro’s recent Vendor Risk Europe event I explained how we outsource tasks for efficiency and quality, but we never outsource responsibility.

Our head of IT, for example, doesn’t just manage vendors – he challenges them. He knows what Azure offers, how it compares to Google, and where we can drive better value. In short, he keeps Microsoft on its toes so that we don’t fall behind.

We’ve applied the same thinking across critical functions: actuarial services, investment management, internal audit, HR. In each case, internal accountability remains strong. 

Our investment strategy, for instance, is designed in-house. Our Chief Investment Officer used to run investments for Aviva and while he may be overqualified for our size, that’s exactly the point – we have to punch above our weight to be competitively agile.

Internal audit? Also outsourced – but selectively. We don’t just hire an auditor, we find experts with deep field knowledge who audit one domain at a time, because when we want our investment management audited, we want someone who’s actually been a portfolio manager. It’s that specificity that keeps our controls meaningful.

The broader landscape demands this. 

And while this creates new threats, it also opens doors – if you’re prepared – because you stand and fall with your partners … not just on day one, but as your business scales.