You are the Claims Director for MMB plc, an insurer. MMB plc intends to reduce its claims handling costs,whilst maintaining its current high level of service. Therefore, MMB plc is going to outsource its claims handling activities for all individual claims up to £10,000 in value.After reviewing potential claims handling partners, SB Ltd has been identified as the preferred outsourcing provider.As part of the review process, the following information about SB Ltd, has been provided to MMB plc:
You are required to analyse the above information and come to a decision on whether SB Ltd should be appointed.
(a) Explain, with justification, based solely on the information above, five issues that need further investigation by MMB plc. (20)
(b) Identify, with justification, one additional item of financial information for each of the issues you have explained in (a) above that will assist in the decision making.