Is a “do-it-yourself” approach holding your company back?
Most leaders understand that delegation is the key to unleashing rapid growth. But some leaders only delegate to employees within their own organizations. That’s limiting. They could achieve so much more with bigger, broader delegation strategies. That’s why ecosystems are so important.
Investopedia describes a business ecosystem as a network of organizations involved in the delivery of a specific service or set of services. Building a smart ecosystem empowers you to capture new opportunities with agility and speed. It’s amazing what you can achieve when you don’t need to build the infrastructure.
An insurance business process outsourcing (BPO) partner should be part of your company’s ecosystem and can provide you with the flexibility and scalability you need to quickly capture new market opportunities.
If you’re not convinced, take a look at these 10 opportunities – all made possible by a quality insurance BPO partner.
1. Support and Expand Policyholder Services
Modern consumers have big customer service expectations, and insurance is no exception. Your policyholders expect to reach customer service representatives through multiple channels, anytime, 24/7. They expect service that’s both friendly and knowledgeable and tailored to them. And they expect fast service regardless of the current call volume.
An insurance BPO can help by providing scalable customer service support that follows your company’s script and branding. These services can be used to back-up your team during high volume times, to support certain lines of business or to roll out new products, like the earthquake program in this example. It’s not an all or nothing proposition.
When choosing a BPO partner, ask about multi-lingual customer service support and insist on insurance-experienced team members. You don’t want a call center rep who is selling blenders one minute and taking an insurance FNOL on the next call.
2. Deliver Exceptional FNOL and Claims Services
When policyholders report a claim, they’re already having a bad day. It is one of the few “live” interactions carriers have with their policyholders. If they get put on hold for a long time, or if they get transferred from representative to representative, that day is going to go from bad to worse.
The first notice of loss (FNOL) experience needs to go smoothly, or the entire claims process can go off the rails. And if the claims process doesn’t go well, the policyholder might switch to another insurance company. The claims process is often a make-it-or-break-it part of the insurance customer/insurance company relationship.
An insurance BPO partner can provide the back office services and 24/7 support you need for FNOL and claims processing. When you pick a BPO partner with expertise in insurance claims, you can rest easy knowing that each claim is getting off to a good start. In addition to providing exceptional service, your insurance BPO partner should be able to verify coverage, triage claims and notify adjusters. They should also be capable of scaling quickly to support you during high stress times like the 2021 Texas snowstorms/power outage or during hail and tornado events.
As this VP of Claims and Operations says, “When an insured is calling us, it can be like 10 to 15 years of premium cashed in one transaction. Expectations are extremely high.”
3. Collect Premiums with Insurance BPO Support
Every month, when premium payments come in, they must be processed quickly and accurately, and any problems or delays could result in costly mistakes, dissatisfied customers and/or inaccurate accounting.
A BPO partner can help with secure, compliant premium collection. They can also help with outbound payments, such as agent commission checks. With these BPO support services, premium collection is effortless.
Look for an insurance BPO that offers premium lockbox and payment posting services, so you don’t have to manually handle and deposit checks. This is especially important in the remote work environment. This type of back office support allows your team to focus on growth.
4. Automate Manual Mail Processing
Like premium collection, inbound and outbound mail eat up a lot of resources. Printing letters takes time and space, not to mention paper and print/insertion equipment. Inbound mail needs to be sorted, delivered to the appropriate department or person, and processed. It all takes time and has gotten more complex in our new remote work reality.
A business process outsourcing partner can automate your inbound and outbound mail processes. Outgoing mail can be fully automated through the entire process from initiation, printing through to delivery to the post office. Incoming mail can be scanned and uploaded into your system as a digital artifact.
Imagine how much time your team could save, and redirect to other more important tasks, if your insurance BPO partner automated your inbound and outbound mail. To get a better understanding of this back office service, check out this multi-line carrier’s story as well as this auto insurer’s story. Also be sure to download our white paper on solving the 3 Most Daunting Remote Work Challenges.
5. Policy Servicing & Underwriting
Sometimes, your underwriting team needs help. Maybe it’s just processing endorsements, supporting special projects or managing a certain line of new business. Regardless of the need, a strong insurance BPO service can help with this, too. A BPO partner that specializes in insurance can even provide licensed team members when needed. Look for a BPO partner with multi-line experience that can be available on short notice to:
- Process new business renewals, endorsements and cancellations.
- Update electronic and paper records.
- Manage short-term projects and complete book rollovers.
- Manage any and all of your underwriting support
6. Launch a Direct-to-Consumer Sales Division
The direct sales model is growing in insurance. Modern consumers have grown up in a world of online research and DIY mindsets, and this translates into insurance shopping.
For insurance companies that have relied on brokers and agents and other means of distribution, taking advantage of direct sales opportunities may seem impossible – but with an insurance BPO partner, it’s easy. Whether your company has been in business for a century or is launching a start-up, insurance BPO services can provide the licensed sales support you need. See how this global insurer introduced a new D2C auto insurance company with an insurance BPO as their sales engine.
Look for an insurance BPO sales team with experienced, licensed agents who know how to listen to your customers, think on their feet and exemplify your brand.
7. Roll Out New Products
Insurance is a heavily regulated industry. You can’t just decide to start offering a new insurance product today and start selling it tomorrow. There’s a lot of work – and red tape – to get through first.
Rolling out new products can take time – but sometimes, you don’t have time. With an insurance BPO service, you can roll out products faster, so you don’t miss out on opportunities. This can include all aspects of the insurance process – from D2C sales to policy servicing and premium collection.
8. Scale Your Business with Insurance Back Office Support
It’s a chicken or egg kind of question.
Should you introduce a new product or scale your team first?
If you choose to scale your team before you know how your product will be received in the market, your expenses can skyrocket. At the same time, if you can’t properly service new customers, your launch could under-deliver and lose valuable new business and market traction.
Partnering with a flexible insurance BPO provides a middle ground, allowing you to provide exceptional service without the cost of hiring, housing, equipping and training a team.
Wondering if this really works? Read this Florida carrier’s story.
9. Manage Change
Transitions can be difficult. If your insurance company is undergoing a major change (like an acquisition/merger, a new system implementation, major staffing changes or an office move), there might be some rocky times ahead. If times get too rough, policyholders might notice – and they might not have the patience needed to ride out the storm.
An insurance BPO can smooth out the bumps, with steady, constant back office support. Once your BPO partner is trained, they are only a phone call away and can start and stop services quickly to help you adapt the evolving demands of your business.
10. Focus on the Big Picture – and Let the BPO Handle Distractions
Think about your company’s mission statement. It might say something about protecting your policyholders or about providing quality products and excellent customer service. It might also include a reference to your core values and traditions.
It probably doesn’t say anything about getting bogged down in the details and doing it all without support.
Insurance back office services allow you to focus on the big picture and what really matters to your company – your policyholders and its shareholders. Anything that distracts your from the big picture, is just a distraction.
And that’s the biggest reason you need an insurance BPO partner – so you can delegate anything that distracts your focus from accomplishing your mission.
Insurers who insist on experienced, onshore BPO support, choose Covenir. We power insurance potential by helping insurers and MGAs bring their growth plans to life. As a premier provider, we coexist with internal teams and other partners, providing a completely flexible and custom service model. Outsourced insurance services include customer service, premium services, FNOL and claims, policy servicing/underwriting, policy advising/sales, print and distribution, and virtual mail room services. Our customers include insurance carriers, MGAs/brokers, insurtechs, and state insurance government agencies.