It is an accepted reality that for any insurance company to be really competitive and challenge others in the field, there is a compelling need to spin off certain non-core activities. Commonly known as back office jobs, these include data processing, forms processing, policy processing, claims management, commission management, and policy management. While all these are an integral part of the whole insurance scenario, these can be outsourced without any danger of diluting the main insurance business. The focus for an insurance back office outsourcing should be the primary task of insurance company – devising and strategizing new policy schemes and selling them.
However, it is important to evaluate thoroughly a few points before finally deciding to pass the responsibility of maintaining certain back office functions to an Insurance Outsourcing Company. It is usually a long term relationship and if the bond has to prosper, there should be a clear vision of what is expected from the outsourcing company and what is being offered by them.
Here are 5 useful tips to find a successful insurance outsourcing company –
Matching Capabilities – Outsourcing cannot be generalized into a fixed compartment. The basic needs will be different between sectors. The requirements of insurance based services will be radically different from IT, ITES or BPO services. Care should be exercised to ensure that the outsourcing company has the resources to take on insurance back office services.
Matching Business Goals – An outsourcing company might have the required infrastructure to support insurance back office services, but if the goals and business philosophy of the two do not match there will be huge discrepancies in communication and a struggle to understand each other’s vision. The focus of the chosen Insurance Outsourcing Company should have insurance sector centric business goals.
Experience in insurance process outsourcing – It is imperative to know the experience of the outsourcing company in this field. The more the experience the more efficiently will they be able to handle critical issues independently. Skill and know-how can only be built up over time. An Insurance Outsourcing Company with long years of experience can even be entrusted with policy management decisions on the back office tasks entrusted to them.
Track Record – In-depth research should be carried out in this area before choosing an outsourcing firm. This will include their antecedents and whether their resources and infrastructure have previously supported the scale of business that is presently being outsourced. Samples of past projects may be asked for and evaluated whether that is matching the work being allotted now.
Financial capability – It is a crucial area as the Insurance Outsourcing Company must have the financial stability to sustain a long term relationship. They should have the means to invest in expanding infrastructure in addition to the existing one. A check should also be carried out on the trustworthiness and the market reputation of the owners and directors.