This desk proposes the following accepted-file cost calculation:
Cost per accepted file = (production + retained carrier work + corrections + exceptions + attributable reinspection + allocated implementation and operating costs) ÷ accepted files
Include software and platform fees, minimum commitments, specialist work, integration support and relevant management effort. Do not count the same reviewer minutes in both routine review and corrections.
For internal production, include production labour separately from review labour. For software, include the people who operate it and handle failures. Keep indemnity payments outside this production-cost metric.
What does a like-for-like comparison look like?
Illustrative calculation only: three fictional routes, each with 1,000 comparable files ultimately accepted. These figures are not supplier prices or market benchmarks.
| Cohort cost | Low-fee outsourced drafting | Managed production | Established internal team |
|---|---|---|---|
| Production charges or internal production cost | $90,000 | $130,000 | $110,000 |
| Carrier review | $40,000 | $15,000 | $20,000 |
| Corrections | $24,000 | $4,000 | $8,000 |
| Exceptions and attributable reinspection | $8,000 | $3,000 | $4,000 |
| Allocated implementation, tooling and support | $10,000 | $10,000 | $6,000 |
| Total | $172,000 | $162,000 | $148,000 |
| Cost per accepted file | $172 | $162 | $148 |
The arithmetic illustrates why a $90 drafting charge does not establish the cheapest operating model. It also shows why internal production deserves a genuine comparison.
Use both a fully loaded view and a forward-looking avoidable-cost view. Report one-off transition spending separately as well as its stated allocation. Released staff hours are capacity; claim cash savings only where the budget or expenditure actually changes.
If files remain unresolved, label the result provisional and disclose expected remaining work. Do not compare a mature internal cohort with a supplier cohort whose difficult cases are still open.
Which sensitivities should procurement require?
Recalculate the business case for lower volume, a more difficult loss mix, longer review time, higher revision frequency, surge charges and a slower implementation. Use the buyer’s assumptions—not a supposed industry-average outsourcing price.
If the preferred option changes under a plausible review-time assumption, collect better time evidence before committing.