Insurance basically offers a protection from uncertain financial loss. This sector, to be honest, is not having its golden days recently. The shifting governmental policies and the cut-throat competition are considered to be the main reason behind it.
On the other hand, BPO or Business Process Outsourcing which basically refers to transferring a part of one’s business to 3rd party vendors on a contract basis is gaining popularity. In 2017 alone, the BPO services India stood at a whopping $178 billion and still growing. Almost every sector today is growing profoundly by incorporating Outsourcing services in its business.
Like every other sector, insurance also hopes to improve its position by holding hands with outsourcing firms and things so far have worked in favor of both. Till May 2017, the market for the insurance sector in India alone grew up to $29.03 billion which is huge compared to 2016 when it stood at $18.76 billion.
With both growing sectors joining hands, it is safe to say that the future of Insurance, as well as Outsourcing, is bright.
Let’s check out the few ways Insurance Sector can benefit from various outsourcing services:
1): A trustworthy call center can go long ways to ensure quality service to the Insurance Company by maintaining a loyal customer base. Call center services can be outsourced to manage customer call queries working 24/7 throughout the year via telephone, email or chat.
2): Data processing has always been the most vital part of Insurance Companies which is a must carry out process among all the other major operations. Earlier it was an easily carried out due to limited business but with the growth of Insurance industry, the data also grew enormously and hiring an outsourcing firm to carry out its data processing seemed only a more viable option.
3): Data mining is primarily used to discover a useful pattern from the previously unknown data. Insurance companies have always used data mining to enhance their decision-making capabilities but handling a large amount of insurance transnational data is way too complex and time-consuming. Hiring an Outsourcing firm for data mining will free its staff for other major tasks.
4): Outsourcing companies can make a huge difference in this field by providing the insurance staff with state-of-art technological support by quickly responding to the customer’s need and provide accurate information regarding insurance policies and any policy related issues. It can also help reduce the paperwork dealing with proposals and policies by letting the outsourcing team of experts handle it.
5): Underwriting in Insurance world means determining the value of premium charged for a particular policy. Underwriters also calculate and balance the risk from potential claims. Outsourcing firms provide underwriting facilities as well ranging from analytics to liability coverage to data scrubbing which again is a lot of paperwork and also time-consuming.
6): With the increase in insurance demands, maintaining of all the finance related data such as to design, run and transform finance along with billing and accounting related functions can hugely benefit from the outsourcing companies as they provide full support to carry out all the above-mentioned tasks to ensure hassle-free cash flow.
Apart from the above-mentioned ways, insurance companies can also gain from focussing on the core activities by outsourcing all the additional work which will result in the increase in the work capacity and the customer satisfaction, which I believe, is most vital for any developing industry.