Insurance
Transform your insurance services: Outsourcing your way to success
With increasing market uncertainty, more businesses seek insurance coverage, increasing the workload on insurance companies. To scale up while maintaining the quality of service and operational efficiency, insurance providers are choosing outsourcing to specialised service providers as a strategic solution.
Data shows rapid growth in insurance outsourcing at a projected CAGR of 4.2% or $10.2 billion by 2028. From policy serving to claims handling and data analytics, the scope of outsourcing is immense.
This article explains the benefits of outsourcing in insurance and the types of services that can enhance insurance operations.
Benefits of outsourcing insurance services
By outsourcing internal processes, insurance service providers can leverage cutting-edge technology, enhance customer experience, and foster business growth. The following are the benefits of outsourcing:
High operational efficiency
Operational tasks include but are not limited to claims processing, underwriting, policy administration, premium collection, and customer support. By outsourcing these, the internal team can focus on core competencies such as product development, service offerings, market differentiation, risk assessment, and business expansion.
Your outsourcing partner ensures faster and more accurate claims processing, higher efficiency, and reduced errors. Insurers can eliminate repetitive tasks such as filling out forms and customer vetting.
Cost optimisation
It is not always possible to find the best talent in your area, and sourcing talent from other geographical locations can be expensive. By outsourcing, insurance service providers get access to top talent across the world at a competitive price. Businesses also do not have to take care of training and skill development, thus saving the cost.
Insurance service providers can choose to outsource selectively based on their requirements. For example, they may outsource claims processing and disbursement only.
Scalability
Hiring and onboarding employees is expensive, and managing churn rates and employee benefits is a non-core activity for an insurance company. Keeping this process in-house also comes with the added burden of physical office space and investment in HR technology.
By outsourcing their processes, insurance service providers can scale up or down quickly without having to hire full-time in-house staff. Insurers can adapt to market demands swiftly, navigate market fluctuations, and seize growth avenues while being cost-efficient.
Better customer experience
The insurance business is highly competitive, and without exceptional customer service, you stand to lose clients to competitors. Outsourcing ensures that you have round-the-clock availability, omnichannel support, and faster response time to serve a larger pool of customers.
A competitive customer service team can address questions, and process claims 24/7. Thanks to the advanced analytics and customer-centric strategies that result from outsourcing, you can offer personalised and tailored service to customers.
Services insurance BPO providers offer
Insurance outsourcing service providers offer a range of services to help you reduce costs and improve efficiency:
Claims processing
From intake to settlement, there are several steps in claims processing. The service provider has the technology to vet incoming claims without human intervention and detect any missing information or fraud. This accelerates processing with a lower cost per claim.
Policy administration
This process includes policy issuance, renewals, endorsements, and cancellations. Outsourcing service providers help insurers manage policy administration and communication with clients more efficiently.
Underwriting
Determining the risk profile of the insurance policy is a key step before issuing the policy. External service providers leverage technology to improve the insurer’s underwriting process, which includes risk assessment, pricing, and decision-making.
Billing and collections
Traditionally, this step has been manual, causing delays and multiple calls or visits to the customer. There also needs to be a clear process in case of premium default. Technology helps inform customers about their upcoming payments, premium rescheduling options, and due dates through email, automated calls, SMS, and WhatsApp.
Customer service
Customer service is a critical process that determines if a potential client will proceed with business. Insurance outsourcing service providers use omnichannel support, including phone, email, social media, and chat, to assist clients with their queries and give them an exceptional experience.
Analytics
Analytics is one of the key areas that insurers often overlook. It provides insights into business trends so that leaders can make informed decisions. It helps craft products that customers would readily buy and set a competitive price.
Outsourcing service providers will offer cutting-edge analytics into your insurance business with reports customised to your needs.
How can Infosys BPM help the insurance sector?
Infosys BPM offers services and solutions that transform your insurance business. Reduce the cost of operations and provide the customer with an unparalleled purchase and onboarding experience.
Read more about the insurance services outsourcing at Infosys BPM.
