WHAT IS BUSINESS PROCESS OUTSOURCING (BPO)?
Outsourcing has evolved over the last decade to meet market demands; in the past, there was a strong need for data entry and call centre representatives.
Insurance BPO: Currently In Buzz
Recently there has been excitement about automation and the opportunities this will offer for various insurance-oriented business process outsourcing. Multiple outsourcing providers have taken different approaches to keep up with these developments.
Before choosing an insurance BPO partner, one must know the different kinds of providers in the marketplace and the advantages each offer.
Various types of outsourcing providers generally fall into three categories. We will discuss each category in-depth below.
SERVICES INSURANCE BPO PROVIDERS OFFER
Fulfilling the demands of insurance companies and meeting deadlines can become hectic, so some providers offer outsourcing to help maintain customer satisfaction.
And to let you know the best, here is the list of activities in sequence so that the customer can relate to policy life cycle:
- – Set up the prospect
- – Write quotes for Personal Lines
- – Remarket personal lines renewal
- – Prepare acord forms for submission
- – Presentation and Proposals for Renewal and New Business
- – Processing Binder and Invoice
- – Processing policies
- – Prepare certificates and Evidence of Insurance
- – Process change request and issue endorsements
- – Process policy downloads
- – Handling Notice of Cancellation and Reinstatements
- – Process Recommendation letters
- – Process a Claim
- – Process an Audit
- – Pulling out reports from carriers to track upcoming renewals and cancellation
These are all the activities we perform.
Providing dedicated staff who can carry out these tasks frees your teams to spend more time servicing clients and growing the business. You also have the opportunity to benefit from technology offered by companies like robotic process automation without putting in the high cost of developing and managing it.
TRADITIONAL BPO MODEL
Traditional outsourcing is when a company manages their processes with another company. The tasks they do and perform are by a specific service level. This type of process management has many benefits, but the best one is wage arbitrage.
Outsourcing can lower the cost of insurance without sacrificing its quality.
TRANSACTIONAL BPO MODEL
The transactional model is useful when dealing with bottlenecks in fast-growing businesses. This can often occur when the organization has not yet built a better project management infrastructure, thereby creating a halt or limit in production capacity. The same can be seen in the insurance industry, where an abundance of backlogs may happen simply due to a lack of talent slowing down the organization.
Organizations experience increased efficiency and workflow efficiency when they use a transactional BPO. This often allows for continuous business operations while implementing the software, even if routines and processes have not been restructured yet.
Transactional BPO is perfect for the following tasks:
- Processing a large number of claims
- Sorting through backlogged policy checking
- Auditing records for compliance
STRATEGIC BPO OUTSOURCING MODEL
Transactional and traditional models focus on specific needs. On the other hand, strategic outsourcing focuses on running business operations effectively.
Here are the following elements of strategic outsourcing of an organization:
The points mentioned above should be aligned to improve business processes and results.
By taking a strategic approach to outsourcing and operations, improvements are made to the complete infrastructure instead of focusing only on a wage arbitrage play.
It’s essential to take a strategic approach when outsourcing. Focusing on high-value jobs makes the most sense, as it will yield high-quality results in all areas of the business.
Fusion Business Solutions pioneered this strategic approach within the insurance industry.
Knowing that the real benefit of organizations isn’t just in the faster processing of tasks but in optimizing those work tasks so they can stay relevant in today’s environment of discontinuous changes. The whole point is not just to lower costs and complete a process faster – it’s about improving and standardizing the process to improve its efficiency, accuracy, and alignment with organizational goals.
KNOW WHY THE STRATEGIC APPROACH IS MORE EFFECTIVE AND EFFICIENT
By preparing a plan before now, an organization will have everything under control regarding turning its strategy into operations.
It is essential to have the right people in the correct positions. This helps maximize efficiency, allowing our company to run smoothly and adapt to changing customer demands.
Systems that require minor maintenance and present the most accurate and efficient processes are the best. Companies must analyze how well their current practices work to determine where to focus future improvements.
Your employees can deliver at their best levels by obtaining and instituting the latest tools and technologies to ensure the available resources.
OUTSOURCE. TRANSFORM. EVOLVE.
When insurance BPO companies/agencies plan their operations strategically; they open the way for profitable growth. Cooperation between the business and operational teams increases effectiveness. Employees can focus on more valuable work, accurate and responsive processes, and reduced noncompliance risks. Sales teams acquire more opportunities and improve customer service.
FBSPL thrives on increasing success in business through outsourcing models to improve efficiency, profitability, and employee retention.