Insurance outsourcing has over the years constantly evolved to newer heights and 2015 has been no exception. In fact, there have been quite a few new trends that have emerged in the outsourcing scenario as both buyers and providers struggle to come to terms with optimized solutions that will be beneficial for both. The insurance sector and especially insurance outsourcing had been slow on the uptake in the recent past. But in 2015 there has been a palpable change in the mindset with insurance outsourcing companies following a vigorous pro-active attitude and insurance companies realizing the full potential of outsourcing.
The insurance outsourcing trends in 2015 can best be understood if it is analyzed from the perspective of both the buyer that is one who is outsourcing insurance services and the provider that is an insurance outsourcing company.
Insurance Companies –
Advanced and Innovative Services – Insurance companies are now seeking out outsourcing companies that have constantly updated their processing platforms and have built in the latest technological innovations in the system. In fact, innovation incentives are now being offered by some buyers.
Splitting up Insurance Outsourcing – Flexibility is now the name of the game as insurance companies opt to parcel out specialized services to specialized companies. Thus, administrative and financial accounting or payroll management may be given to outsourcing companies who are experts in these fields while IT and policy processing may be given to those providers with the required technologically advanced IT infrastructure. The emphasis now is being put more on “domain expertise” than on those that are offering the lowest rates.
A range of Outsourcing Location Options – This is the latest insurance outsourcing trend of 2015. Insurance outsourcing companies that can offer multiple outsourcing locations are the much-preferred option today. This includes on and off-site work, in cities that offer lower operating costs and same location or off-shore work. It results in optimum utilization of resources at a much lower cost and clients can take advantage of this while drawing up affordable contracts.
Insurance outsourcing companies –
Innovative Contract Structuring – Contracts for outsourcing insurance services in 2015 have become very creative with hitherto unheard of clauses. These mainly revolve around taking over specific assets of a client with an upfront payment. It usually includes hardware and software as well as intellectual property rights in a few cases. This gives the BPO additional leeway in offering top end outsourcing services.
Incorporating RPA software – The shift now is on robotic process automation (RPA) software. Insurance outsourcing companies are gradually adapting to these smart platforms that take much of the pressure off tedious tasks that does not need any major decision-making or skill sets. Studies have projected that over the next three years RPA will help reduce staff at BPOs substantially thereby cutting down on establishment expenses.
Shoring up Security Breaches – The highest priority in 2015 for insurance outsourcing companies has been data protection from hackers especially after attacks on major companies in the very recent past. Insurance companies have huge personal data to deal with and this has to be kept secured at all times.
Outsourcing insurance services is a continuously evolving process and 2015 has seen a lot of new and innovative trends emerging in this sector.