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: 

• Underwriting
• 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. 

How?

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. 

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!