9 Compelling Reasons Why Insurance Outsourcing Can Help Scale Your Business
- September 19, 2022
- 7.5 min read
- By Amen Mpofu
TABLE OF CONTENTS
In today’s competitive insurance industry, you need to look for effective ways to reduce costs and improve your bottom line. One of the best ways to do this is through insurance business process outsourcing (BPO).
You can adopt this strategy to lower expenses, increase efficiency, and improve customer service. Insurance BPO allows you to focus on what you do best while outsourcing the rest.
In this blog, you’ll discover 9 ways insurance BPO can help you with a robust back-office service support system.
What’s the state of the insurance industry today?
The insurance industry has faced many challenges as a result of the pandemic. According to McKinsey’s recent report, firms are experiencing declining revenue growth, low productivity, and fierce competition for tech-savvy customers.
Deloitte also examined the insurance outlook for 2022 and beyond. Its findings highlighted the following as additional headaches for your business.
- Inflationary pressures
- Sustainability matters (climate risks)
- Diversity and financial inclusion
- Changes in customer products and buying preferences
- Attracting and hiring top talent
- New technologies to enhance the customer experience
However, there is a silver lining for you as the same report shows the sector could grow by 3.9% globally. So it’s not all gloom and doom—you must change your approaches to overcome challenges, win new customers, and remain relevant.
Insurance business process outsourcing is the perfect strategy you can use to accelerate your growth and boost market share.
What is business process outsourcing?
“Business process outsourcing is the delegation of one or more IT-intensive business processes to an external provider that, in turn, owns, administers, and manages the selected processes based on defined and measurable performance metrics.”
You can engage an insurance outsourcing company or third-party vendor as a strategic partner to manage your IT-based insurance services. For example, Office Beacon (OB) can provide back-office service support to help you focus more on strategic planning and implementation.
According to the PwC insurance outlook report, the following can help you expand and meet customers’ ever-changing needs.
- Leverage data and the latest technology to provide users with a seamless experience from quote to sale and claims.
- Innovate products to satisfy unserved or underserved market segments.
- Adopt a lean structure to slash operational costs and improve the bottom line.
- Set up an integrated ecosystem through a partnership to provide an efficient distribution service.
- Outsource a third-party vendor, such as other carriers or distributors.
Thus an insurance BPO is a valuable asset to help you achieve your business objectives. Now let’s explore how you can maximize a strategic collaboration with an insurance outsourcing company.
9 Ways insurance BPO can help you thrive against all odds
1. Handling the quote process
Your company needs an efficient and user-friendly system to process quotes for your potential customers. It ensures that you respond faster to their queries, leading to happy customers.
But it would be more productive to partner with a business processing outsourcing company.
An insurance BPO can deploy a virtual insurance agent to manage your routine and time-consuming tasks like quote summary and proposal. Because Office Beacon also uses the latest software to process these documents, your new clients can receive help at lightning speed. As a result, you can boost your insurance back office support, which in turn, increases productivity and allows you to zero in on core responsibilities.
2. Document indexing and filing
Data management is another challenging activity for your company because it involves organizing and analyzing huge volumes of data. Human errors can occur, and this can compromise your decision-making and data security.
However, you can outsource document indexing and filing to a back-office service support company.
An insurance outsourcing partner has professionals who understand the ins and outs of the entire insurance index filing process. They also use cutting-edge tools to manage all data processes efficiently. Because of this, you can have credible information while making huge savings on costs.
3. Billing and accounts receivables
As McKinsey reports, insurance businesses like yours are experiencing revenue growth challenges. In addition, cash flow mismanagement, missed payments, and late delivery of invoices are potential drawbacks in the sector.
To deal with these problems, you must have an effective billing and accounts receivables mechanism.
You can work with an insurance business process outsourcing company to handle all your accounting tasks, such as bank reconciliation. It gives you access to experienced accountants and proper accounting and bookkeeping software. A well-oiled back-office support system improves your cash flow and revenue margins.
4. Loss run processing
To ensure quick loss run processing, there are several things that you must fulfill. First, you need experts who can prepare accurate reports to allow you to make informed decisions. Secondly, you should have high-performing software to capture error-free data.
Thirdly, specialists need to examine your reports to assess the potential insurable risks.
All these detailed activities can be overwhelming for your company. A BPO with skilled personnel (virtual insurance agents) and the right tools can come in handy to shoulder these responsibilities. An Office Beacon insurance service delivers a cost-effective loss run processing system to ensure it’s on time and elevates your customers’ experience.
5. Renewals processing and managing the renewal list
Policy renewals play an essential role in retaining your customers and ensuring that your business continues to receive income. It means that you need a timeous renewal process and to keep an updated list.
It’s pretty clear that the more sluggish your system is, the more costly it will be. You can lose thousands of dollars.
But you can have peace of mind when collaborating with an insurance outsourcing service. Business process outsourcing can take charge of your renewal processing and manage your renewal list. It can also help you retain customers and improve your bottom line with the right software and customer-focused service.
6. Claims management and follow-up
The more your business expands its portfolio of insurable risks, the more claims you are likely to receive from your clients. And when they file claims, customers expect a quick response to show you are more interested in their welfare.
In addition, you have been flooded with an avalanche of claims since the start of the global COVID-19. You are also at the mercy of internet fraudsters making false claims.
How can you navigate this rough terrain and ensure you have a water-tight claims management process? A third-party insurance vendor can come to your rescue and handle the claims lifecycle, provide clients with a 24/7/365-days service, and assess claims to minimize fraud.
7. Certificate of insurance process services
For your business to survive the cut-throat competition in the insurance sector, you need to concentrate on your core competencies. You can do this by outsourcing repetitive administrative tasks like the certificate of insurance services (COI) to Office Beacon insurance specialists.
BPO enables you to put more effort into developing groundbreaking strategies to stay ahead of your peers.
A back office support system can process, validate, and disburse COI in line with your insurance industry guidelines. Well-trained insurance BPO staff can ensure your customers receive accurate certificates of insurance well on time.
8. Policy checking and policy servicing
As a carrier, you are inundated with countless policy applications and renewals. Plus, your in-house team must verify every document to see if customers have provided all the relevant information. It’s a tedious process.
You are better off with an insurance business process outsourcing partner. They can manage policy checking and servicing to offer your clients an optimal insurance service.
And they can create quotes and proposals, process business renewals, and keep your company’s electronic records up to date. As a result, you can use your time to zoom in on finding more customers.
9. New business setup
You could have a brilliant idea to launch an insurance business but be unsure of the whole process. And entering this sector may look straightforward on paper. However, you must satisfy several regulations, apply for a permit, and understand your target market.
Due to a highly competitive market, you need solid strategies to stand out from the crowd.
Luckily, an insurance BPO can deploy experienced virtual insurance specialists like insurance marketers, robust business planners, and excellent market researchers to make things easier for you. They can handle your new business set up to help you scale faster than you would if you did it alone.
Why Office Beacon’s insurance outsourcing services can benefit your business
One of the crucial highlights from the PwC report is that you must work with strategic partners to maximize your expansion. OB is well-positioned to play this role in offering you back-office service support for your insurance company.
You can benefit from the company’s outstanding achievements, which are:
- Over 20 years of experience in claims administration as back-office service support for insurance companies
- Experienced professionals who grasp the insurance sector inside and out
- Latest insurance software and a customer-centric approach
- A trusted partner of leading insurance companies
OB provides insurance agencies and carriers like yours with best-in-class services and customized software.
What’s more, you can work with qualified and pre-screened staff to complement your internal team. They act as your company’s extension.
Alternatively, you can work with full-time or part-time employees one-on-one. It helps you find the best and most valuable solutions for your business.
Insurance business process outsourcing (BPO) is the preferred choice for you to expand your business. You can outsource repetitive and routine insurance tasks when you work with a strategic partner.
Back-office service support for insurance companies can help you focus more on your core skills while enjoying substantial operational savings. Schedule a call to discover how Office Beacon can set you up for success.