The focus of any industry in today’s severely competitive business environment is to maximize operational efficiencies, emphasize core activities, and cut out flab that drags down growth and profitability. This is true for the insurance business too which has actively implemented ways and means that have enabled it to maintain quick and exponential business development. The core activity of the insurance sector is selling policies and anything else is considered to be supporting services that do not directly affect this primary activity. Hence to remain competitive it is imperative that insurance companies can opt for insurance back office services and save on time, man-hours, and costs.
What 5 back-office operations can choose for insurance back office outsourcing?
Learn types of back office tasks you can outsource to an insurance outsourcing firm:
1. Data and Forms Processing Services
Huge amounts of data are generated in the insurance business and processing them in-house would require installing sophisticated and cutting-edge hardware and software at huge investments. However, insurance back office outsourcing offers this service at very affordable costs without compromising on the quality of processing or data entry accuracy. The same is true for forms processing.
There are almost limitless forms that need to be processed – claims forms, application forms, payroll forms, medical forms to name a few. By delegating this activity, manpower can be diverted to the more productive activity of insurance selling.
2. Commissions Management
This is a very complex activity made more difficult by the fact that there is no uniformity here. Different types of policies have a varying quantum of commissions payable to agents and therefore commission payable for no two policies will be the same.
Insurance process outsourcing companies, on the other hand, have the required infrastructure and trained manpower to manage the commission management process accurately and quickly. Details of the policies sold by an agent have to be uploaded to the agency that then processes it immediately.
3. Claims Management
This is one of the most crucial tasks for any insurance business and also the most intricate, simply because a policy lifespan may be decades old and all records have to be verified before a claim settlement can be made. It is a long drawn out and tedious process that takes off the focus from more pressing activities linked to growth and development.
However, top insurance back office outsourcing companies have systems in place that enable them to complete claims processing quickly. Once the outsourced agency is informed of a claim made by a policy bolder the process is set in motion. Inclusions and exclusions are carefully studied and the claimant eligibility is examined in great detail.
Since the credibility of an insurance company is at stake, pains are taken by the agency to put the process on the fast track and settle it at the earliest.
4. Policy Processing
While it is true that devising new policy covers and schemes and structuring plans that offer great client benefits fall under the ambit of core activities, processing them does not require any discretionary powers. Only a set of rules for maintaining all records meticulously has to be scrupulously followed until a claim is made.
All these huge amounts of data processing will drain precious resources of insurance companies if done in-house. Outsourcing of this work to the top of the line insurance outsourcing services is the best option.
5. IT Data Processing
It makes sense to outsource data processing since agencies offering insurance process outsourcing services to insurance companies make huge investments in setting up IT and data processing infrastructure. These systems are constantly updated with the latest technological innovations and cutting-edge technologies to cope with the consistent incremental business being generated by the insurance sector.
Due to high volumes in turnover, these outsourced agencies are able to offer very affordable IT data processing rates. Most importantly it is strictly ensured that there are layers of data protection security measures in place.
The primary benefit that insurance companies get by outsourcing these services is that they do not have to make huge investments in setting up the infrastructure to handle these services. Additionally, more attention can be given to business development without getting tied down to supervising backend services.
Contact ISW for Insurance Back Office Services
One of the leading outsourcing agencies in this field is Insurance Support World. Our team of insurance industry experienced personnel along with sophisticated processing systems enables us to offer excellent insurance outsourcing services to our clients around the world.