What is Insurance BPO?
Did you know that the top reason for outsourcing (70%) is to cut down on costs? This is a benefit that insurance companies can make the best of.
Why is outsourcing particularly helpful to insurance companies?
Insurance companies are especially document-heavy and run high with operational costs due to the nature of the work they do. Policy administration, claims management, and claims processing are all critical activities, but activities that require much hands-on attention, money, and time.
Insurance business process outsourcing (BPO) involves contracting out key functions to an external provider specializing in those activities. The activities and key functions usually associated with insurance BPO include:
- Risk management
- Claims handling and processing
- Payroll services
- Collection of premiums
- Policy renewals
- Process automation
- Maximizing efficacy of IT infrastructure related to insurance processes
- Rolling out new products and determining pricing
- Back-office support
By outsourcing these insurance services, your business can greatly elevate the customer experience and other core areas of operations. It no longer has to spend copious amounts of time, personnel, and resources to handle its insurance administration and related functions.
Keep reading to find out!
4 Key Benefits to Insurance BPO Services
Apart from the usual benefits of outsourcing, insurance companies stand to gain the following benefits specific to their niche.
1. Reduces the amount of insurance paperwork your team needs to complete
In-house insurance (and often HR) teams are known to be particularly paperwork-heavy. Whether it’s dealing with claims, drafting new policies, or sending notices out to policyholders, in-house insurance teams are often overflowing with a range of documents that can be challenging to keep track of.
Insurance BPO companies can help tackle this challenge, often by taking on the brunt of the manual work themselves or helping to find automation opportunities. Both methods can be more cost-effective for your business and shorten the turnaround time for these tasks.
2. Helps organizations manage their data more efficiently
Data is king, and any business that isn’t handling it efficiently is losing out on opportunities for better decision-making. No matter whether you’re a health insurance company, in P&C insurance (property and casualty), or even life insurance, data and proper analytics can heavily impact your business.
You need a firm handle of your data entry (this can also be outsourced!) and collection to better cater to policyholders, ensure customer satisfaction, and provide the right support services. Insurance BPOs can help you with just that.
3. Low-cost alternative to hiring an insurance agent
Hiring, training, and onboarding insurance agents into your team can be a long and laborious task. When partnering with insurance BPO service providers, you can cut down on these costs. These agencies already specialize in the tasks you’re looking to outsource. In the long run, you’ll achieve more cost savings with an insurance BPO provider than agents.
4. Access to experts
Even if insurance BPOs specialize purely in back-office services or even call center related tasks for customer support, you shouldn’t take their expertise lightly. By getting access to experts with years of experience you may otherwise not have found, insurance BPOs can help you attract and retain new business, refine your decision-making, and enable your company’s growth.
Examples of When to Use an Insurance BPO
Believe it or not, insurance BPO doesn’t only apply to insurance companies or standard businesses. Insurance BPO can be applied to both professional and personal reasons! They can be used to manage your own insurance policies and that of your family and enable better life planning for you.
Here are examples of different ways you can use an insurance BPO today.
Professional reasons to leverage insurance BPO
You want to start your own business but don't know how much liability insurance will cost.
If you’re starting a business, having liability insurance is critical, especially if you’re involved in a high-risk industry (like healthcare, for instance). Insurance BPOs can help you navigate around these areas as you get started.
A business owner has an idea for a new product but doesn't know if it is feasible.
Starting and launching a new product can be risky, especially since you can never gauge customer demands and their reactions. Taking on insurance for this purpose is possible, and you can also work with an insurance BPO to find out what solutions are best suited for the product in question.
An employee or contractor was injured on-site and needed medical attention urgently.
Accidents happen, and as a business person, you must be prepared for this. The last thing any employer wants is for someone to become injured and/or a lawsuit from their employees. Protecting yourself and your employees in this scenario can be done through an insurance BPO’s guidance.
Your company wants you to take out life insurance, but you don't know what type of coverage they offer or how much it costs.
If you’re working in a growing company, chances are you’ll be offered benefits like life insurance and asked to choose between different plans. It’s important you make an informed decision that best benefits you in the long run.
As part of your annual review process with an insurance company when renewing or updating policies.
During policy updations, consulting with a BPO and having them provide guidance can ensure you get the best value for the premiums you’re paying.
Personal reasons to leverage insurance BPO
You're thinking about buying some stocks and need more information about their risk level.
The stock market can be a risky gambit. Going in blind is unwise, and getting professional advice will help you cut your losses and prevent them, too.
A homeowner can use this information when they file an insurance claim for their damaged property.
Property insurance can be complex. If you own a home and face an instance of claimable property damage, you want to make sure you’re filing the claim the right way and leveraging the right policies to do so.
When you are looking to buy a home or car.
Vehicle insurance and property insurance are both critical aspects for any adult to consider during a purchase. The average person may not be incredibly well-informed on these things, but that’s where BPO providers can give a helping hand.
If you have an existing insurance policy and want to see if there is a better deal out there.
If you’re unsatisfied with the existing policies you have, you always have the option to explore better ones. Maybe you’re exploring different premiums or policy terms; whatever the reason, an insurance BPO can help you shortlist the alternatives and make an informed decision.
Before purchasing expensive items such as jewelry or electronics.
If you’re looking to purchase luxury items, you should definitely consider insuring them. The more you invest in something, the more you should take in protecting your investment. Insurance BPOs can determine the best policies for you for such rare and expensive items.
As part of your annual financial review with your accountant or tax advisor.
Having an insurance policy can provide certain tax benefits. Surprised to know this? A lot of people don’t until they consult their tax advisors. A BPO may be able to provide all the relevant data and information required by your accountant during tax filing season.
BPO with STAFFVIRTUAL
Whether you’re an insurance company looking to outsource customer support or a self-employed individual lacking an assistant and the capacity to navigate your personal insurance strategies, we have you covered.
STAFFVIRTUAL can help you make the best of your BPO functions, both from a professional and personal capacity today.
Get started today by getting your free outsourcing plan, or click here to explore more of our outsourcing services!