How BPOs are Transforming the Insurance Industry

Mar 19, 2020
business process outsourcing services

Industries around the world are rapidly evolving and adopting technologies on the go. They usually handle huge amounts of data entry work and go to great lengths to ensure that this data is appropriately stored, categorized and secured in the database. Data entry is considered menial but is also a critical assignment in any industry. When it comes to insurance especially, it is extremely important to have the data handled in an impeccable manner without any errors whatsoever. It is, therefore beneficial for insurance companies to invest in insurance business process outsourcing.

By leveraging the advantages that the BPO model provides, insurance companies have been able to reduce operating expenditures, focus on business growth and shave unnecessary burden and stress off their in-house staff. The BPO Business Model is designed to manage information, thereby enabling companies to efficiently manage day-to-day functions and focus on their business’s profitability and growth.

Why do Insurance Companies Outsource?

call center services for Insurance Companies

Meticulous Work –

Hiring someone that needs training and investment requires spending money and resources which may not necessarily be the best option for organizations juggling multiple clients and deadlines. The wiser choice would be to offload your work to a dependable and experienced outsourcing company in the relevant field. By allowing such an organization to share the load, ensures quality work carried out in a faultless and organized manner.

Impeccable Customer Service –

The function of an insurance company is to provide financial protection and reimbursement of damages to an eligible individual or organization. Focusing concentration on comparatively redundant work in an inexperienced domain would prevent companies from pursuing their main functions – which is expanding their productivity, profitability and most importantly, ensuring the happiness of customers.

A Strategic Option –

To ensure a smooth business insurance process flow, outsourcing helps in reducing operational costs, overcoming economic uncertainties and helping clients maintain their top-notch services to customers. A truly successful insurance business process model includes a standardized documented business process, a rationalized delivery model and a plan to maximize customer retention.

For companies facing challenges in finding the right staff, business process outsourcing is key. Outsourcing can increase productivity and profitability by taking up routine tasks which lets employees focus more on their area of expertise and delivering output that matters most.

A huge amount of work in a limited amount of time –

High volume work can be outsourced when the timelines are tight. Outsourcing can help complete a large volume of work in less time as it is their core business and they have the necessary representatives and resources to deal with such work.

Security of Business Data –

Every business process outsourcing company has specific clauses and measures which guarantee the comprehensive security of a company’s business data. This is why it is important to ensure that the organization that is being considered is a trusted name in the relevant field.

Common Insurance Services that are Outsourced –

call center insurance services

The field of insurance is a vast field, involving hundreds of thousands of sub-services that work in tandem to achieve a well-oiled mechanism. It is this intricate set of services that can make or break a company’s reputation in the eyes of the public.

Here is a look at the most commonly outsourced insurance services:

  • Data Processing

One of the critical day-to-day functions of an insurance company is data processing. It scales along with the company’s growth. Insurance companies have to invest in additional computers, resources and other technological equipment leading to higher operational and administrative costs.

Call center business process outsourcing companies cut down operation costs and provide accurate data and enhanced operational output at a fraction of the cost.

  • Data Mining –

Data mining helps insurance companies identify useful customer patterns that are critical to decision making. The old way of handling huge amounts of transactional data was often complex and took up a lot of time.

Outsourcing data mining services of insurance companies can be used to quickly identify risk factors that can give an idea about profits, losses and trends. This service also provides customer-level sales & marketing analysis, insights on product development, estimates outstanding claims provision and helps predict fraudulent claims.

  • IT Services –

Using modern technology provides vital information about almost any query regarding insurance and can promptly respond to customer’s needs. Outsourcing IT services reduces paperwork dealing with policies and proposals. The paper trail can be reduced through web or mobile-based applications where most of the processes and policies are automated.

IT outsourcing helps in generating more insurance proposals and policies, process more information and thus provide enhanced convenience to customers.

  • Customer Call Center –

Calls outsourcing has to be one of the most utilized forms of business process outsourcing.

Call center outsourcing can benefit an insurance company in many ways:

  • helping insurance companies meet regulations
  • retaining customers
  • maintaining the loyalty of customers
  • helping the company venture into new markets 

Insurance companies can use this type of outsourcing to address their client’s inquiries and issues mainly through the phone. Electronic mail and chat services are other forms of communication used. A customer service representative can follow through an entire process till the end. Call centers boost insurance company’s customer’s trust by providing emotional and professional support.

  • Underwriting –

As the life insurance industry continues to evolve, key players in the sector have realized that significant cost benefits can be obtained if a part or all of their risk management functions are outsourced. Insurance underwriting is one such domain.

Insurance underwriters examine insurance proposals to identify their validity and assess the risks involved. This process includes catastrophe modeling, renewing and underwriting support. The underwriting services can range from business process management to analytics. Other services include liability coverage, data cleaning, account clearance, submission and clearance of eligibility checks, etc.

  • Finance and Accounting –

Insurance companies, in exchange for a premium, manage the financial risks of their clients. Empirical data is gathered by studying similar policies that are used to frame new policy premiums. As the customers of insurance companies grow, so do the financial transactions. Since it is the fiduciary responsibility of the insurance company to deliver on their claims, outsourcing financial and accounting services to design and run finance, forming billing and accounting related maneuvers to maintain cash flow and improve customer approval ratings.

Things to consider while choosing an Insurance BPO partner:

  • The idea that business outsourcing is downsizing is completely unfounded. The main idea of a business process outsourcing industry is to reduce costs and revive revenue
  • The BPO industry knows how privileged and confidential the information about a company is and hence it is important to check if there are stringent measures in place to prevent data leaks.
  • Communication plays a key role in ensuring that the required tasks are performed suitably. Regular communication is important between the employees and the outsourcing firms so as to prevent mistakes that arise due to misunderstanding.
  • Taking a look at the outsourcing company’s portfolio will help in understanding their quality of work. It will also be helpful to note the education and experience levels of the employees at the outsourcing company.
  • Insurance companies based in other countries like the US, Canada, etc hire services from countries like India as it is favorable due to the difference in time zones. Choosing a provider from these regions will let the company reap the benefit of quick turnaround times.
  • Outsourcing doesn’t serve any purpose if the costs are highly expensive. The amount of expenditure should be calculated before hiring an outsourcing company and incurring a loss.

The insurance industry faces several challenges, from stiff competition to stringent regulations. They also have to handle high operating margins and meet customer expectations to provide the best services. This creates a very challenging and volatile market. Operating in such a position is not very ideal where just cutting down operation costs won’t help. Business owners need to strategically assess and evaluate their organization’s resources and adopt innovative approaches that can be met through outsourcing.

A large number of insurance companies have thus found in the business process outsourcing model, a way to boost their profits, productivity, and performance. With impeccable and a comprehensive understanding of the subject matter, many business process outsourcing processes boast of keen designs which enhance the efficacy of processes given.

Several outsourcing companies offer value-added services including flexible commercial models, embedded analytics, consultative and transformative delivery models. Such services ensure a consolidated set of comprehensive, next-generation technology solutions that maximize the value of insurance companies.

ExpertCallers offers expert comprehensive solutions in the insurance business outsourcing domain. Skilled and experienced help desk professionals provide front-end services to customers across the globe. We effectively integrate technology, skilled personnel and flexibility to provide end-to-end insurance claims processing services.

We follow strict data security protocols to safeguard client information. We follow your company procedures and protocols to maintain your brand identity throughout our partnership.  By outsourcing your call center services to ExpertCallers, you will be partnering with a provider that has excellent inbound and outbound services personalized for insurance companies.