Australian insurers are likely to move to outsource their back office operations to focus on core trade with clients, a leading claims manager has forecast.

Speaking at an Australian and New Zealand Institute of Insurance and Finance seminar in Melbourne last week, Cambridge Integrated Services MD Paul Serong said outsourcing is likely to hold increasing appeal for the local insurance industry.

“In my opinion that is the way Australia is going,” he said.

His comments follow the acquisition of India-based parent Cambridge Solutions by global business processor Xchanging in October. Xchanging was responsible for revolutionising the archaic Lloyd’s system, creating an almost fully electronic process.

Mr Serong told delegates two leading Australian banks are likely to be among the first local players to outsource certain back office functions.