It is always helpful to have the “Best Eye” on important tasks. The Insurance industry is vast and depends on the accurate filing of documents. An Outsourcing Partner acts as the “Best Eye” and simplifies the process of Insurance Policy Checking and gives enough time to the Insurance Provider in concentrating on other important operational tasks. The Policy document is very important in the Insurance Industry and acts as the binding agreement between the Insurer and the Insured. Outsourced Partners help in the proper filing of the policy document.
What is Insurance Policy Checking?
The Insurance industry covers sectors such as Automobile, Home, Health, Theft, etc. Each insurance policy has a different set of clauses and requires important documents of the clients, or respective parties. The goal of every Insurance provider is to maintain a long healthy relationship with the clients and to increase the customer base exponentially. As the customer base keeps on increasing, the checking process becomes complicated, and chances of error increase. Every day there are several new applications, renewal applications, and claims that need to be settled.
Insurance policy checking involves scrutiny of the documents submitted by the agents or clients, filling of the applications properly, checking of the policy terms, etc. These processes should be performed efficiently to prevent losses of the Insurance Provider. The Insurance Policy Checking and administration services process is time-consuming and requires high accuracy.
Key Aspects of Insurance Policy Checking Services Provided by a Third-Party Partner
- Scrutiny of Documents
The clients submit several documents for obtaining Insurance Policy. The most important issue is Data Integrity. An Outsourced partner should be responsible for validating the documents submitted by the clients. All the customer details must be accurately validated. There shouldn’t be any discrepancy in the information provided. All the policy quotes, proposals, and binders’ generation must be thoroughly scrutinized to identify inconsistencies in the policy agreement. The information provided in the applications must be tallied with the documents provided. It is very important to check whether the documents submitted are genuine or not. Proper verification helps to ease the claim settlement process.
- Accuracy of Coverage Details
The Insurance Policy Agreement must have a clear cut list of the things that are covered by the policy. Clients like to customize the coverage based on their specific needs. It is the responsibility of the Outsourced Partner to act as a bridge between the Insurance provider and the customer. The Outsourced Partner should be able to calculate the impact on the premium charge due to the adjustments requested by the client in the policy. The revised premium charge must be sent to the Insurance Provider for approval; this enhances the accuracy of the coverage. The coverage details should be accurate and validated by both the client and the Insurance Provider.
- Error Identification and Communication with Underwriters
Underwriters evaluate the risk of policy and determine the premium of the policy based on the evaluation. Underwriters help the Insurance companies to stay at the desired risk level and run the operation smoothly. Too much risk can ruin an Insurance company. So, proper and timely communication with the underwriters is important. An Outsourced Partner should be able to reduce the task of underwriter by verifying the particulars of the quote, policy, and the proposals. An automated process helps to reduce the turnaround time for the policy issuance process. Any error identified should be reported to the underwriter on a timely basis. This helps the underwriter to ease the workload as they will have few errors to deal with.
- Customer Service for Policy Status
Insurance is a recurring expense for customers. There are several offers such as bonuses, an extension of coverage, etc. that are provided by the Insurance companies to the customers. Customers should be provided with a platform for checking installment premium, bonus amount, premium due date, the loan amount, the annuity, the payment status, etc. Outsourced Partner should be able to provide a platform where customers can check the status of their policies in real-time. This facility helps customers to stay informed regarding the policy and also allows them to make decisions regarding the amendment of coverage terms.
- Issuance of Final Policy after Adjustments based on Underwriters Input
The Final Policy is drafted after all the errors are mitigated and adjustments made based on the Input provided by the Underwriter. An Outsourced partner should have a proper process in place to complete the process effectively and with a significantly shorter turnaround time. All the customer requests and policy changes must be incorporated before the issuance of the final policy.
- Effective and Competent Team
The Outsourced partners are specialized in gathering the most competent and effective team based on their several years of working experience in this domain. Insurance policies’ Terms and Conditions stretch to several pages, and it requires trained eyes and expertise to extract the vital information from it. Outsourced Insurance Partners are specialized in this domain and have a pool of experts having more than five years of experience in the Insurance domain. Finding a suitable candidate is time-consuming and difficult. So it is always advisable to outsource Policy Checking services.
- Cost Savings
Setting up an Insurance Policy Administration Service requires time and huge capital investment. The quantity of work provided to the hired team may be cyclical. So it will be difficult for the Insurance company to make their employees stretch for extra hours during peak periods. An outsourced partner is mainly engaged in policy administration services. So, they have several clients and maintain a steady workflow pressure throughout.
- Quick Turnaround Time
The most trained eyes can also make mistakes. Policy Checking Process involves scrutiny of several pages and runs the risk of human error. To deal with this issue, the Outsourced partners have automated most of the process. Automation reduces the risk of human error and also reduces processing time, thus leaving the Insurance Company with enough time for other operational tasks.
- Focus on Core Operations
The Policy Checking process is extremely time consuming. Several documents need to be checked and validated. When an Insurance company outsources this part to Insurance Partners, then they are left with enough time for other operational tasks. This improves the business of the Insurance Company, and they get time to strategize growth.
- Accurate Results
Outsourced partners design the Policy Checking Process in such a way that they can provide near to 100% accuracy. All the latest Automation Technologies are in place to reduce human Intervention and cut on errors. Everyday advancements are made in processes of Policy Checking to reduce error counts.
The current pandemic has made the insurance industry extremely vulnerable. Life Insurance claims have increased by many folds and as the economy is in a standstill, so other insurances such as vehicle, property, etc. are not attracting many customers. The current pandemic has made policy checking very challenging.
- Outsourcing Risk
Many Insurance companies run their backend operations from countries providing cheap labour, like INDIA, CHINA, etc. The current pandemic has affected those countries and is mostly in a lockdown situation. Most of the employees are working from home with a lack of technical resources. They are also facing data integrity and other security issues.
- Fraud Risk
The current pandemic has resulted in several job losses, and this has led to an increase in fraudulent claims. As most of the employees are working from home, so cases of hacking have increased, wherevital information is getting stolen.
- Keeping the Shared Network Functioning
Most of the Insurance offices are closed due to the Government’s restriction. It is getting difficult for customers to receive information regarding their policies. Interest rates are changing in the market due to the Government’s intervention. The change in interest rates will affect the Insurance premium, but there is no proper communication to customers, and they depend on brokers to resolve their issues. Brokers generally lack expertise regarding policy nitty-gritty.
- Team Collaboration Issue
This is the first of a kind scenario where the entire world is working from home. Policy Checking Process requires Teamwork. It is getting difficult to organize virtual meetings for companies having large team sizes. Network issues, security issues, etc. are making coordination among team members difficult.
- Quality Check for Remote working
Policy Checking requires 100 percent accuracy. A minor error can lead to huge losses or penalties. Maintaining the quality of performance in office space under the manager’s supervision is easy. This task, however, gets difficult when the team is working from home. Proper allocation of work hours and off-hours is difficult in this situation
Steps for Error-Free Policy Checking Process by Outsourced Partner
Insurance Policy Checking comprises several steps that need to be followed for the generation of an error-free Policy Statement.
Step 1: Receiving Policy Document from Insurance Company
The Outsourced Policy Checking partner receives the policy document from the Insurance Company in their system. There are several platforms on which the documents can be received. Once the document is received, the Policy Checking partner channelizes it to the respective internal department for the review process.
Step 2: Retrieval of Proposal Document from Database
The Insurance proposal for each customer is different. The proposal is customized based on the requirement of the client. So, once the policy document is received from the insurance company, the respective proposal document that was made by the Insurance Company to the customer, is retrieved.
Step 3: Comparison of Policy Document with Proposal Document for Differences
The efficient and highly trained Policy Checking Team starts to compare the policy document with the proposal document. They look for discrepancies and go through several pages of Terms and Conditions. To avoid human error, most of the processes under this step are automated by the use of artificial intelligence. The automation helps to deal with the enormous volume of data and speeds up the process.
Step 4: Updating of Information based on Checklist
The policy requires several basic information of the client in the document. The information is updated based on the checklist provided. This helps to ensure that the policy document is filled and contains all necessary information. The checklist helps to avoid omissions.
Step 5: Informing Carrier Regarding Differences
After a comparison of the policy document with the proposal, if any difference is observed, then the difference is communicated to the Insurance Company. The communication is mostly done via E-Mail, to keep proof of the conversation. The Insurance Company goes through the discrepancies and informs the correction that needs to be done.
Step 6: Dispatch of Policy
Once all the documents are validated, and data integrity is ensured, then the Outsourced Partner dispatches the policy to the customer. The policy dispatched is error-free and on time.
Who we are and Why We Are an Authority?
Insurance Back Office Pro has the technical expertise, Capital support, and the tools that help clients to enjoy the best services in this dynamic world. Insurance Back Office Pro operates 24/7 and has a highly knowledgeable customer service support team for assistance. The Insurance Policy Checking service provided by Insurance Back Office Pro meets global standards. They operate at nearly 100 percent accuracy and still trying to teach the latest technologies in operation to improve efficiency even further. The current pandemic has raised security threats to the entire Insurance sector. Insurance back office Pro have adopted themselves with the changes quickly and have transformed the Office based policy checking service into a secured remotely operated service. The whole Team of Insurance Back Office Pro is working hard to provide support to the Insurance sector so that the sector can operate normally in this pandemic.