Efficient handling of insurance claims is a cornerstone for insurers. Outsourcing this process has become a strategic move for insurance companies. It helps to streamline workflows, reduce operational costs, and improve customer satisfaction. Let’s dive into the benefits of outsourcing insurance claims processing. and how it simplifies processes
Benefits of outsourcing insurance claims processing
Time to focus on primary business activities – Claims processing is a back office task. It does not fall under the ambit of core activities. It primarily consists of selling policies and structuring new schemes to offer a range of alternatives to customers. Claims arise often decades after you sell a policy. Hence there is no point in tying up huge investments for maintenance of old accounts. Outsourcing this function results in reclaiming the time you have for business growth and development.
An increase in total productivity – Productivity is an indicator of a company’s ability to get the best out of employees. It ideally one of the top measurable performance parameters. These mainly rest on total sales in the current year and the incremental business over last year. Reaching business targets is another criterion. It is crucial to divert trained and qualified manpower from the claim processing tasks. This will further allow them to focus on increasing sales and enhancing productivity.
An increase in market share – This is not a direct impact of the decision to outsource insurance claims processing but is nevertheless crucial. By outsourcing, there is no need to invest heavily in infrastructure, state of the art hardware and software and trained personnel. Use this capital savings to structure policies and schemes with highly competitive prices. With the support of dedicated insurance retailers and wholesalers this pricing strategy increases market share.
How Claims Processing Streamlines the Process
Quick claim eligibility evaluation – Top claims outsourcing agencies have the required systems in place to deal with claims processing. The complexity of it is visible by the fact that placing a claim after the lapse of a very long period from the purchase of the policy. Verifying old records meticulously especially the history of premium paid before sanctioning a claim is itself a daunting task, multiply that by the hundreds of claims presented for payment every month and the true magnitude comes to the fore. Just outsourcing this one task guarantees a huge load off your shoulders freeing you up for more productive activities.
Quick settlement of claims – There is no doubt that the reliability and integrity of an insurance company depend on the speed of settlement of claims. This is the promise that was in-built and obvious when the policy was sold and any deviation can impact the credibility of the company and impede business growth and development. By deciding to outsource insurance claims processing this aspect is fully covered. These agencies have skilled and trained resources that can quickly trace back to old records, verify their genuineness, evaluate the legitimacy of the claimants, process the claims and facilitate quick disbursal. An insurance company will not have any stake in this – the whole process will be comprehensively taken care of. Just imagine the load it would otherwise put on the insurance company.
Accuracy in claim disbursal – After the claim is settled experts and auditors carry out a thorough due –diligence check to make sure that the amount paid is correct in all respects and that disbursal has been made to the actual claimant. The insurance company thereby is not put at a loss and is also insulated from any future litigation.
Choose ISW as your Strategic Outsourcing Partner
These are some of the reasons why outsourcing of insurance claims management services is so important in the insurance sector today.