More and more businesses are finding value in business process outsourcing, or BPO. It has helped many businesses, both large and small, transform their businesses into scaleable companies primed for Inc. 500 dominance. Some industries caught on quick and were early users of BPO, like the banking and financial industries. They were truly the pioneers of business process outsourcing.
However, the insurance industry has been making big steps toward fully-implementing insurance BPO. This has led to a surge of profits, leveraging outsourcing opportunities in very innovative ways. This is due to the information technology across a variety of processes and functions.
Finding the staff and digital tools you need to create an efficient, effective, and profitable process can be challenging. But business process outsourcing makes it far easier. You can find the experienced team you need, with the skills you have to have to grow. Let’s take a quick look at what BPO is exactly, and the areas in which it is helping insurance businesses streamline performance and sales.
What is Business Process Outsourcing (BPO) exactly?
Business process outsourcing, also known as BPO, is a method for businesses to subcontract business operations to vendors outside the company. BPO was once for manufacturing businesses, but it has now been put into use for businesses in a wide range of industries, such as banking, finance, supply chain, and insurance.
Understanding BPO is critical to its implementation and use. From startups to large companies, outsourcing processes can make a big difference. Especially in today’s digital era when things change quickly in the business world. The business world is also closely connected globally now.
By adopting BPO practices, you can enhance your business in many ways, increase profits, and solidify market dominance, when done effectively. Now let’s take a closer look at a few reasons BPO is right for the insurance industry.
1. Insurance BPO and call centers
Insurance companies of all shapes and sizes can employ call center to ensure a claim is fully managed until the claim is settled. For instance, one insurance call center representative can follow a claim once filed, following up regularly, answer insurance claim questions, guiding customers through the process until it is concluded.
BPO also lets insurance companies use call centers for sales, gaining new insurance clients. The sales process can be challenging to manage, and it takes up to 12 touch points before closing a client. A call center team can manage this, but can also have a higher success rate then doing it in-house.
This type of BPO service increases customer satisfaction, as well as trust when it comes to converting qualified sales leads. It can be the professional and emotional support an insurance company can leverage for growth and success.
2. Insurance BPO streamlines data processing
Data processing is a very critical part of any business, but even more so for insurance companies. It is simply part of the daily process, and something that must be done correctly.
To ensure this happens, insurance companies can use professional BPO services. These types of BPO benefits include, data entry tasks that are detailed and accurate, customer filing data, business transactions, and sales of policies, invoices, and more.
3. BPO delivers professional underwriting services
From analytics to business process management, underwriting services needed in the insurance industry are wide ranging and needed. This can also be part of an insurance companies business process outsourcing strategy.
For example, you can receive services for liability coverage submission and clearance, application processing, client background checks, account set up and verification, as well as property data management.
Within property data management, BPO services can actually automate processes via tools for rating and determining risk. Auditing and other key underwriting functions can also come into play. This makes business process outsourcing enticing for insurance companies, serving up automation in a variety of ways.
4. Business Process Outsourcing stays true to its roots
Even though insurance BPO is insurance focused, the pioneering industries of finance and accounting still play a role. Now insurance companies can collaborate with professional finance and accounting teams that are outsourced via BPO to do a number of tasks.
These tasks are efficiently managed to increase cash flow and boost customer satisfaction. This is important for any industry, but when it comes to insurance, it’s a critical function that needs to be seamless.
In conclusion . . .
The above four reasons why BPO is right for the insurance industry are just the tip of the iceberg. There are plenty more enticing aspects, but the above are among the most valuable in a sense. Business process management is no longer for well-funded, highly profitable global corporations. It is available for all in the digital era we live in. From startups to mid-size companies, BPO is value added.