CSC has been an insurance outsourcing provider since the 1970s. Rasmussen says outsourcing providers today have been plagued by the concept of per transaction pricing. Historically, the outsourcing providers have examined back office tasks like answering the phone or issuing a policy and attached a cost to them. And that's what the outsourcing provider then charged the buyer. Rasmussen says this kind of calculation made sense when the insurance companies were underwriting simple mortuary insurance policies that just had a death benefit.
Policyholders have claims.
Therefore, the cost to service these policies is not black and white, so it cannot be accurately calculated the old way.