Insurance BPO (Business Process Outsourcing) sector has seen significant growth in the past owing to the increasing customer demands, competencies between the insurers, and the need to manage business operations proficiently. Every insurance business model aims to generate maximum profits by delivering quality products and services to its customers. In order to meet such quality standards, they need an expert team who can take care of the business operations smoothly. Every insurance firm aims to employ the best individuals to have a skillful team that can provide the required quality.
But, the problem persists when the workload increases with business expansion and the firms need more skilled and experienced individuals. This is where the insurance business process outsourcing steps in. It provides insurers with improved work productivity, cost efficiency, resource management, and achieved targeted turnout time.
According to a study carried out by Grand View Research, Inc, the size of global business process outsourcing market is likely to reach $343.2 billion in coming six years, at a compound annual growth rate of 7.4%. The requirement of cutting down on operational costs is the critical factor, which may drive the market in future.
Insurance BPO market to grow at more than 20% CAGR by 2025
Insurance BPO is a sub-division of BFSI which is short for BPO in Finance, Financial Services, and Insurance. This also includes contracting an insurance company’s business processes to a third-party service provider having expertise in the insurance domain. The insurance industry has also witnessed outsourcing of complex business operations in recent years, which will most probably increase further between 2019 and 2025.
Top Insurance BPO Positives
After considering the aforementioned facts and information, it would not be difficult for you to understand that outsourcing some operations of your insurance company will help your business grow and run smoothly. Partnering with rapidly growing outsourcing companies unlocks the following advantages for you:
• Increased Flexibility in Operations
By outsourcing your company’s noncritical/basic/repetitive functions, you’d be able to utilize your internal resources for essential business operations and core competencies. Also, BPO allows you to react positively to evolving market dynamics quickly by enabling you to update your processes as per the changes occurring in the market. If you’re not going to hire additional in-house resources, you don’t require to worry about equipment and software.
Similarly, in case your project flow is inconsistent or seasonal, outsourcing is the best solution in place. It allows you to increase or decrease the amount of work to outsource according to project requirements, without hiring full-time workers and paying them fixed salaries.
• Specific Service Option
You can hire specialized outsourcing service providers for a variety of processes. Third-party service providers will definitely enhance the work quality. For example; you can hire one outsourcing company for insurance reporting, policy management, and claims management, while another one for specific marketing purposes. Your operations will turn out to be more productive.
Most insurance bpo companies generally hire employees who are experts in their niche. Thus, you can rest assured that skilled and experienced professionals will handle all your outsourced business operations.
• Global Presence
BPO allows you to offer services in multiple languages and across various time zones. For example, you have a very important client sitting in Italy who only understands Italian; if needed, you must provide him with complete support. Here if you outsource client support operations to a multilingual outsourcing company, you wouldn’t lose out on such valuable clients. This advantage will not only improve your clients’ experience and satisfaction, leading to client retention but also extend your global presence.
• Brand Building
If you outsource your company’s non-critical processes such as policy checking, insurance renewal process, insurance reporting, etc. you would save enough time and effort. You can further leverage this to enhance the quality of your products and services, elevating your marketplace reputation and brand through targeted marketing efforts. It might seem basic to you, but your brand image is something which is of utmost importance to keep your business stable in the long run.
• Access to Diversified Talent
Insurance BPO services open doors to a massive talent pool where industry experts are ready to support some of your business operations. Even if you have a highly qualified and skilled workforce in your company, outsourcing helps you get more experienced professionals to work on your projects. This will have a much positive impact on your company, and you will enjoy the privilege of having a diversified set of talented and dedicated people to work for your company.
• A Cost-Effective Solution
Outsourcing some of your insurance business operations leads to saving money by cutting down on expenses on hiring additional in-house employees. Insurance outsourcing services providers can cost-effectively handle your business processes, along with providing the benefits like economies of scale, customized services, specialized workforce, and low-cost countries. You can choose variable-cost models such as fee-for-service plans, instead of implementing fixed-cost models. Insurance BPO doesn’t require you to expand your office space to accommodate more employees, saving more on real estate costs.
All these advantages will come along with a valuable and reliable outsourcing company you choose. Going further, let’s now discuss how this industry is adapting to emerging trends with the end goal of delivering satisfactory services.
Insurance BPO Trends
In recent years, the industry was concerned about skill shortage, increased trade protectionism, and some corporate relationship issues. However, the insurance BPO industry seems to be extensively optimistic about reduced regulations and market growth. Businesses are getting encouraged by the benefits reaped through new and valuable technologies such as process automation and cloud computing. Outsourcing service providers (worldwide) are expected to adopt new technological innovations to efficiently tackle market challenges, improve product and service quality, and manage the shortage of talent – along with keeping operational costs low.
While global BPO companies will implement cost-cutting strategies, the industry will continue to grow for the period of the next six years and more. Many outsourcing companies are expected to invest in robotic automation in the next two years. They are also focusing on improving skills and knowledge by providing high-end training to employees. Most importantly, the industry will get major benefits from increased transparency in globally standardized outsourcing policies. All these forecast facts indicate that it is the right time to invest in outsourcing; as this may turn out to be your silver bullet.
As now it is fair enough to say that the insurance business process outsourcing industry is on a roll; you might think of outsourcing some processes of your insurance company. It will not only aid you in business growth but enable you to serve your clients in a much better way. In case you’re looking for some outsourcing providers, it is advised to choose one wisely based upon its experience and worldwide recognition.