For insurance companies, the perennial challenge is to keep customers satisfied consistently. They can achieve this by processing claims promptly, resolving issues, and making timely yet accurate decisions. This challenge (mainly) has remained at the top over time because of its complexity and dynamic changes in human nature.
However, that’s not the only challenge. Hurdles such as intensifying competition, rising fraud cases, talent shortages and management, digitalization, and more have also become topics of concern over time.
The ultimate and most efficient solution to tackle these challenges is outsourcing your firm’s operations to an insurance outsourcing company. Not only will your company reduce costs, but all operations will be streamlined, resulting in quick, accurate claims.
You can opt for outsourcing insurance BPO services, claim settlement operations, and even back-office operations. To learn more about how outsourcing can help, please read on.
The Growing Need for Outsourcing in Insurance
Like any other industry, the insurance sector also faces mounting operational challenges. Rising operational costs, keeping up with stringent compliance requirements, inefficiencies in work, and unpredictable season workloads are a few issues that every insurer is confronted with.
There’s a need for outsourcing because such issues not only strain resources but also risk compromising customer satisfaction. And let’s be honest, no customer wants to work with an insurer who can’t keep up with their promises.
When you partner with a specialized service provider, you get acces to expert talent, result-oriented workflows, and advanced technology-driven operational efficiency. All of this comes under a package that reduces your firm’s overhead operating expenses.
Additionally, outsourcing provides your company with solid back-end support to scale the business. This is possible without overextending the internal team, as you’ll have a pre-trained team of professionals managing peak workloads accurately.
Core Areas of Insurance BPO Services
Outsourcing insurance BPO services can save up to 15% on average over your in-house team (Source: ISG). But what comes under this package of services? Let’s take a look!
- Insurance Service Processing: The outsourcing partner manages the policy issuance, endorsements, renewals, and provides comprehensive customer support.
- Insurance Claims Outsourcing: This area covers the entire claims lifecycle. They’ll manage operations starting from registration and verification to processing the claims. Also, outsourcing partners use a well-designed operational structure that keeps clients in the loop during the claim settlement process, ensuring complete transparency.
- Back-Office Support: Accurate record-keeping is crucial during the decision-making process, and back-office support is required to streamline this process. Outsourcing these services means getting support in essential functions such as data entry, documentation, underwriting assistance, and reporting – all important for maintaining records faultlessly.
Benefits of Insurance Outsourcing Services
Insurers around the globe are increasingly turning to outsourcing services because of the following reasons:
- Cost efficiency: You save money by not spending on hiring additional talent, their maintenance, training, and other facilities. Therefore, your overhead and infrastructure expenses decrease significantly. A study by ISG found that 68% of responding companies in their research cite reducing operational costs as a primary motivator for outsourcing.
- Accelerated & accurate claim processing: The leading insurance operations outsourcing partners use Artificial Intelligence and machine learning for automated and streamlined workflows. This way, they boost the claim processing speed that too without any manual errors.
- Customer-centric services: The insurance sector is dynamic, with no timelines, because of the ever-changing environments. It involves uncertainty as humans are involved in the processes, and no one knows what happens next. Therefore, to cater to those sudden needs, you need a team that works as your second pair of hands, always ready to take the peak workload of your in-house team and keep every operation efficient.
- Compliance & risk management: Outsourcing partners remain abreast of the latest rules & regulations because various companies depend on them. Their main focus is to support insurers with expert regulatory compliance and data security consultancy. Further, they themselves comply with every national rule to mitigate the risk of involving in legal disputes.
- Mitigates risk of losing clients: By reducing inefficiencies and mismanagement, outsourcing reduces the risk of losing clients. Remember, slow, unsupportive, poorly managed companies are not the choice of today’s clients. Therefore, to reduce the risk of losing them, outsource insurance operations and focus on scaling your business.
How to Select the Right Outsourcing Partner
Choosing the right outsourcing partner can define the success of your business. So, take a look at this quick guide to pick the right one:
- Experience: Make sure they have expertise in managing operations for insurance types that your company provides, like motor, health, property, or comprehensive. You can even ask for case studies to verify their track record.
- Technology: Ask them what technology they use. Are they using an I-powered claim verification system? Is there a fraud-detection technology they use? And do they use CRM platforms for communication? If yes, does it align with your in-house CRM?
- Scalability: You can ask how they efficiently handle sudden spikes in claims or policy renewals.
- Data Security: Data is of utmost importance, and you must ask them what measures they take to secure it. You can ask if they comply with standards like ISO 27001 and GDPR.
If you get satisfactory answers to these questions, don’t wait to hire them and grow your business.
Future Trends in Insurance Outsourcing
Insurance outsourcing is an ever-changing sector that evolves according to trends. AI-powered claims processing, fraud detection, and predictive analytics are being adopted for smarter underwriting and risk management.
With a growing focus on personalized, customer-centric solutions, outsourcing remains a strategic partner for those who aim to smooth their operations while saving expenses.
If you aim to be part of the future, it’s time to partner with a leading insurance outsourcing company such as IMS Datawise. Explore our wide range of solutions tailored to organize and boost your business operations. You can contact us to learn more about how we can help.
