ASO Insurance: Understanding the Concept and Benefits of Administrative Services Only

Administrative Service Only or ASO Insurance is a concept related to managing group insurance programs or employee insurance. In this approach, the company takes over administrative functions from a third party, such as an insurance company.

ASO gives companies complete control over insurance program management, including benefits design, claims control, and administration costs. In this article, we will discuss the concept of ASO in group insurance, the role of ASO in employee benefits, and the benefits and advantages of the ASO approach.

ASO Insurance: Concept and Definition

ASO Insurance is a concept in which a company manages its own group insurance program or employee insurance without involving third parties such as insurance companies. Under the ASO approach, the company is responsible for the administration of the insurance program, including claims management, benefits design, and provider selection. With ASO, companies have complete control over their insurance plans.

ASO’s role in Employee Benefit

ASO has an important role in employee benefits, including group insurance and employee insurance. Following are some of ASO’s roles in employee benefits:
1. Full Control: ASO gives companies complete control over their insurance program. Companies can adjust the design of benefits, control costs, and make strategic decisions according to employee needs.
2. Flexibility: With ASO, companies have flexibility in choosing providers, negotiating contracts, and adjusting benefits according to employee needs. This allows companies to provide insurance plans to suit the unique needs of different groups of employees.

3. Optimum Provider Selection: In the ASO approach, companies can select the most efficient provider according to their needs. This can help companies get better service quality at lower costs.

Also read: The State or Work System and the Impact on Job Performance After the Pandemic

Benefits and Advantages of ASO Insurance

ASO Insurance has a number of significant benefits and advantages, including:
1. Cost Control: With ASO, companies have direct control over administrative costs, claims and benefits. Companies can optimize insurance spending by controlling these costs.
2. Claims Transparency: ASO enables companies to have direct access to claims data, so they can analyze claim patterns, identify risks, and take necessary actions to reduce claim costs.
3. Adjustment of Benefits: ASO provides flexibility in adjusting insurance benefits according to employee needs. This allows companies to optimize employee benefit programs to better suit the specific needs of employees.

Also read: Performance Management: Optimizing Employee Productivity and Well-being

Third Party Role in ASO

In ASO, companies or organizations usually still involve third parties who act as administrators or service providers. These third parties may assist with administrative processing, information technology, and claims support. Nonetheless, the company retains full control and responsibility for their insurance program. 

ASO Insurance is a concept that gives companies full control over group insurance programs and employee insurance. With ASO, companies can control costs, adjust benefits, and choose optimal providers. ASO provides flexibility and transparency in managing insurance programs, so companies can optimize their employee benefit programs.

Even though it involves a third party as an administrator, the company remains fully responsible for the management and decisions related to the insurance program. Thus, ASO Insurance is an effective and strategic approach to employee benefits that benefits both the company and employees.


Aman is a company that offers various health protection products for employees. By having reliable employee insurance like Aman, the company can provide essential benefits to its employees. In the long run, this can improve employee satisfaction, productivity, and retention.

When it comes to employee health benefits, Aman is the right choice to assist companies and employees in meeting their health protection needs, register now!