Insurers are rethinking outsourcing strategies as offshoring, once favored for cost and talent access, faces challenges in data security, coordination, and real-time collaboration. Nearshoring is gaining traction by offering improved communication and moderate savings. A strategic framework based on skill needs, IT functions, collaboration demands, geographic diversification, and data privacy helps guide decision-making. A balanced approach combining offshore, nearshore, and onshore resources is ideal. With generative AI poised to disrupt traditional outsourcing, insurers must shift focus to value-added, innovation-driven activities.

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