The backbone of insurance companies is the wholesalers who gives business in bulk. As compared to retailers, they have direct contact with the policy purchasers. This primary responsibility gives the wholesalers a right to demand the best of services. However, the speed of services and optimized insurance back office support can deliver outcomes in time. They are also accountable to retailers who have to offer the best of streamlined services to the insured. This is because they are in direct contact, increasing their market share. Under such circumstances, wholesalers would prefer insurance back office outsourcing.
But first, what are the advantages of choosing outsource back office functions. The first is obviously to gain access to specialized services offered by outsourced agencies. It eliminates the need to invest heavily in infrastructures such as hardware, software and human resources. Reclaims these costs for structuring new insurance schemes at competitive prices. Moreover, outsourcing policy processing, claims, commission management and data processing enables to focus on designing new schemes.
What are the Benefits of Insurance Back office Outsourcing
Speedy processing –
The reputation and credibility of insurance agents depend on the ability to deliver the best customer service. it also helps to boost the speed of operations. The most important requirement for wholesalers is policy processing. Their job doesn’t end when they submit new policies to the company. They have to get back to the retailers with the policy processing in the shortest possible time to hand over the same to customers. Hence, finish all the tasks such as verification, validation, and corrections in the policy in the policy document. Outsourced agencies have systems in place that can ensure this.
Claims processing –
This is another area that has a direct bearing on wholesalers. Claim processing is a lengthy and often complex process as details in policies taken out decades earlier have to be taken into account. But it is very important as an insured person takes out a policy on the premise that in the event of any untoward incident, nominees will have no problems in quickly getting the claims payment. If policy processing is delayed it directly impacts the credibility of retailers and by default the wholesalers. By outsourcing insurance back-office task to specialist agencies the claims processing is speeded up.
Commissions management –
Wholesalers deal with hundreds of policy schemes of different insurance companies. Separate schemes have varying commission amounts payable and consolidating them accurately and making timely monthly payments can be a herculean task if insurance companies have to do it themselves. But when prefer insurance back office services to those having expertise in this field wholesalers can be sure that their monthly remuneration will be accurately calculated and paid.
It is thereby seen that from the perspective of a wholesaler, outsourcing certain insurance back office jobs goes a long way in optimizing their overall efficiency and integrity.