Demanding customers and an ever-changing business environment influence the insurance industry landscape. On the one hand, dynamic market drivers and complex regulations impact the industry. On the other, modern day insurance customers are highly tech-savvy and expect a frictionless, efficient, and positive experience.
Such shifts pose enormous challenges to insurance companies in terms of operations and business growth. They struggle with customer query overloads due to the lack of a digitized claims management process. They are also facing challenges in customer acquisition due to rapidly evolving consumer products and purchase preferences.
This demands the use of consumer-friendly and non-disruptive processes. According to a survey conducted by Deloitte, one of the other key challenges that insurance companies are also struggling with in 2022 is the recruitment and retention of high-level talent with advanced technology and data analytics skills. These challenges along with challenges posed by an ongoing Covid-19 pandemic demand a sustainable solution for business growth.
Outsourcing as a sustainable strategic option
Here’s where outsourcing steps in as a strategic plan to overcome the above-mentioned challenges. With the help of highly functional outsourcing service providers, you can reduce operational expenditures and streamline day-to-day operations to drive profitability and growth. This also allows you more time to strategize scalability through customer and competitor analysis.
Some of the other main drivers of outsourcing for insurance companies are better business processes, reduced operational costs, access to better resources, customer retention and focus on business growth.
10 Ways an Insurance BPO Places You on the Right Growth Trajectory
- Customer support services
Today’s insurance customers expect fast, friendly, and personalized services. Around 90% of customers believe that the experience their insurance company provides is as important as its products itself.
Insurance outsourcing companies offer quality inbound and outbound solutions to support your customer’s needs and build their loyalty. They provide 24/7 support across multiple channels to fulfill the expectations of your modern customers. Insurance BPOs assist in addressing customer queries, claims follow up, and engaging with customers through various processes.
- Claims management services
An effective claims management is essential for any insurance company to improve customer satisfaction and loyalty. The speed, accuracy and efficiency of claims processing is also important to control costs and manage risks.
Insurance BPOs help to improve claims management processes with a two-pronged approach of ensuring speed and quality to customers and at the same time, lowering your administration costs. With their efficient services, they verify the validity of claims and ensure that you do not face any revenue leakage.
Using responsive approaches, insurance BPOs transform your first response process to provide your customers a smooth and fuss-free experience. Such an engaging experience and responsive approach helps control your customer attrition rates.
Insurance premiums form a major part of an insurance company’s revenues. Processing large volumes of insurance premium payments from multiple customers in an accurate and quick way can be challenging. A lack of resources only adds to its complexity.
Insurance outsourcing companies help you streamline your premium collection process. They also help you in automating processes and developing customized solutions to address business specific complications in the premium collection process.
They take a customer-oriented approach in premium collections by handling it smoothly and ensuring a positive experience for them.
- Data processing services
Data processing is at the heart of an insurance company’s operations. This includes everything from data entry of customers paperwork to daily transactions of bills, payments, receipts related to insurance policies. The volumes of such data tend to be massive.
Insurance BPOs help you minimize your burdens through their administrative and data processing services. They offer benefits of expertise in quick, accurate, consistent, and up-to-date database management to improve customer satisfaction levels.
They leverage data analytics solutions to assist you in generating more leads, improving customer satisfaction, mitigating fraud, and predicting risk accurately.
- Data mining services
Data mining helps you understand your customer better. It gives you insights into your customers behaviors that have a direct impact on your business. These insights include risk factors, outstanding claims, fraudulent claims, feedback on new products, and other financial data.
Insurance outsourcing companies provide their expert data mining services to assist you in finer customer-level analysis, marketing analysis and financial analysis. They help you gain better knowledge of driving factors that improve your strategic decision-making.
- Underwriting services
The underwriting process plays an integral part in your daily business operations by helping you determine the amount premium you need to charge for policies. It has direct revenue implications and therefore needs to be accurate and reliable. It also determines feasibility and risk factors.
Insurance BPOs implement advanced analytics into this process and transform it to give you a clearer picture. They help you understand and audit your risk in a particular policy’s tenure.
- New product development
Customers in the insurance industry are becoming more and more used to convenience and end-to-end services. Therefore, you need to regularly develop new products or product variants that offer improved benefits to customers. This kind of reevaluation can be a convoluted process.
To navigate through such complexity, you would need the support of insurance outsourcing companies to achieve your goals quicker. Insurance outsourcing companies assist you in the process of reconsidering your product-oriented business and developing more customer-oriented products.
They also help you minimize friction across business models, resources, and processes. Therefore, they ease out the complexities that arise in your new product development process.
- Compliance and regulations management
Compliance and regulation management is a complex but an indispensable aspect of insurance operations. Insurance laws and regulations are constantly changing creating a need for regular updating of customer documents.
Such business requirements are best taken care of by insurance BPOs to leave you with time to focus on your core business processes. They possess the necessary technology and reporting tools to keep a watch over your compliance management needs.
- Flexibility and scalability
Expansion of product portfolios bring in challenges of pricing leakage, fragmented operations, and increased IT costs. Adapting to such evolving conditions of expansion of product offerings requires constant round-the-clock support backing you.
Insurance BPO companies provide you high levels of flexibility to cater to changes in regulations or changes brought about due to your competitors or even internal changes.
They assist you in scaling up to conform to such changing factors. Due to their flexible models of engagement, they help you deliver quality services to your customers in a cost-effective and time-efficient manner.
- IT automation services
Automation helps increasing time efficiencies and customer convenience. It also helps in controlling handling and operational costs. Automation has also been proven to increase processing productivity by 20% and self-service transactions by 40%.
Insurance outsourcing services help you reduce administrative and manual tasks across processes in your organization by automating them. Therefore, insurance IT outsourcing services help you capitalize on intelligent technologies.
How Our Insurance BPO Services Drive Business Growth And Keep You Future-Ready?
Insurance companies that continue to function in a non-collaborative manner will end up on a path to redundancy. In today’s digital world, partnering with insurance BPOs has become critical to improve customer loyalty. After all, the insurance business is all about the trust that your customers place in you in an event of loss. Therefore, your growth is consequential to you maintaining and nourishing your relationship with your customers by streamlining operations. Insurance outsourcing services have become a strategic option to redefine customer relationships, expedite digital innovation and drive business growth. To understand the importance of insurance BPO services in addressing various challenges, you can take a look at our infographic here.
We offer a wide range of insurance outsourcing services that include claims management, data processing, policy issuance, billing, renewals processing, new product development and much more. We provide custom-built solutions that are backed by latest technologies to help you deliver better customer experiences and generate revenue. We help you achieve scalability to meet your growing business needs. We also assist you in becoming future-ready with the help of advanced technologies. You can read more on how insurance BPO providers are helping make insurance operations future-ready here.
As a strategic partner to over 50 clients across verticals such as health insurance, property insurance, annuity insurance, life insurance, general liability insurance and much more, we have assisted them in gaining control over various aspects of their business operations. To cite an example, we assisted a US based insurance company in streamlining their claims settlement process. The client’s objective was to improve their insurance claims settlement methods to ensure scalability. To address this need, we improved their workflows with efficient and intelligent case management. We incorporated analytic tools to identify problem areas and improve processes. This led to a 20% reduction in their claims processing time and a cost savings of 20%.
Who We Are and What Makes Us an Expert?
This article is brought to you by Insurance Back Office Pro. We are a leading provider of insurance outsourcing services. With over 8 global delivery locations, we offer 24/7 services by our skilled team of experts. Please get in touch with us to know more about our services and process.