10 Scenarios to Engage a BPO Partner
- July 25, 2019|
- Ernie Feirer|
- Comments Off on 10 Scenarios to Engage a BPO Partner
While insurers have been utilizing business process outsourcing partners for years, now more than ever it is critical to have access to external resources for insurers who want the ability to rapidly respond to changing markets and become more competitive and profitable. Here are just some of the scenarios where a BPO partner can help insurers:
- Business Volume Fluctuation. Whether normal business volume fluctuations or variation from a catastrophic event, an outsourcing partner can enable insurers to quickly scale by providing extended hours servicing, or managing policy, billing or claims processing to support business fluctuations.
- Resource Challenges. Whether an established insurer is losing experienced resources due to retirement or a startup is challenged by limited resources or inexperienced resources, a BPO partner can be a smart option to extend resources at a lower cost than hiring more staff. Partners can create capacity for insurers by performing tasks, processes, and services, allowing insurers to dedicate their talent toward more strategic activities.
- Agency & Insured Communications. A BPO partner can be used to deliver routine update calls, such as claim status, customer satisfaction surveys, or outbound marketing calls informing agents of new products to support customer experience initiatives. Outsourcing outbound campaigns are of great value to insurers looking to improve customer experiences or take routine tasks off high-value resources.
- Book rolls, closing or consolidating large blocks of business from acquisition or mergers. Managing the book transfer process or moving a book of business to a new system can be inefficient and costly processes. Turning support for this business or converting then to an outsourcing partners’ systems can free your resources for more critical tasks.
- Orphaned Lines of Business. At times, carriers have an orphaned line of business that they must maintain until the last policy expires. Turning support for this type of business or converting it to an outsourcing partners’ systems can help separate the data from your core systems and keep your resources focused on new and active lines of business.
- Support for Government-Controlled Business and Depopulation Programs. Managing a government-controlled business or taking over policies from one can be challenging. Turning support for this business over to an outsourcing partners’ systems can ensure regulatory compliance by gaining access to best practices and separating processes.
- Management of Routine Operational Activities. A partner can take over day-to-day operational activities – such as printing & distribution or data processing – so that an insurer can free resources for more critical tasks.
- Launching New Capabilities. When entering a new market or creating a new company, insurers can engage a BPO partner to support the new business rather than building the business within the company. Engaging the BPO partner allows the insurer to test new products in a low-cost way before ramping up a fully operational team internally.
- Legacy Migrations and Systems Modernization. As insurers are moving off of legacy systems and modernizing their operations, they can struggle with managing and supporting the changes when multiple systems are in play. An outsourcing partner can support these efforts with access to best practices and additional resources.
- Unique or Specialty Markets. Unique or specialty markets often mean a smaller book of business. Insurers can engage a BPO partner to gain access to market expertise to support the business rather than having support handled by internal resources.
No matter the scenario, insurers who are utilizing BPO partners realize numerous benefits, including:
- Operational Effectiveness and Efficiency. The right BPO partner brings best practices for business operations providing operational efficiencies that benefit insurers.
- Ability to Focus on Core Competencies. Handing off routine or day-to-day operational activities to a partner frees internal resources to focus on strategic, core areas of the business.
- Access to Experienced Resources. BPO partners bring access to experienced and often licensed insurance professionals who can support operations and a lower cost.
- Increased Agility and Flexibility. BPO resources enable insurers to scale resources up and down and be in a position to quickly respond to market demands and opportunities with ease.
- Cost Savings. Utilizing a BPO partner allows insurers to save on not only human resources but in many areas – from office equipment to technology costs.
Outsourcing has become a beneficial strategy for insurers to manage time-consuming back-office processes to rapidly respond to changing markets and stay competitive and profitable in the new digital era.