Growing your insurance firm in a time of inflation and skills shortages might seem daunting. However, a business process outsourcing (BPO) strategy for administration services could be the key to unleashing your full potential. Read on to learn how outsourced insurance administration services can help grow your company.
Insurance administration is a complex and time-consuming endeavour. It involves everything from examining policy documents to attending to activities associated with customer claims.
It’s an area of insurance that involves tremendous amounts of documentation, potential bottlenecks, and slow-moving workflows. This can quickly lead to poor customer experiences, not to mention significant expenditures to manage processes and systems.
It’s no wonder that policy and claims administration are two major tasks frequently outsourced by insurance businesses.
Here are 3 ways that outsourcing insurance administration services can help you drive growth in your company.
1. You Can Deliver Better Customer Experiences
According to The State of Connected Customer report, 84% of customers say the experience a company provides is as important as its products or services. However, there is a significant gap between customers’ expectations and what most companies are actually delivering.
For many decades, consumers saw insurance as a commodity product they had to buy based on what was available. But over the last decade, the market has become saturated with more insurance players and a plethora of digital products. Hence, customers now have many different options.
Today’s most successful insurance businesses understand the new relationship dynamic and build their entire operating model around the customer.
Outsourcing non-core administrative activities to a seasoned BPO partner is increasingly being recognized as a lever to drive more positive customer experiences and foster long-term loyalty. A good BPO partner can help you:
- Increase accuracy
- Lower turnaround times
- Reduce customer-reported errors
- Minimize customer grievances
… all of which will improve overall customer satisfaction.
2. You Can Focus on Core Business Activities
BPO providers have teams who can handle routine tasks so your internal teams can stay focused on aspects that directly impact business growth. These core activities might include:
- Risk management
- Pricing
- Actuarial activity
- Technical product and service innovation
- Growth and diversification strategies
- Exploring and entering alliances
… all of which will lay the foundation for sustainable and profitable growth.
3. You Can Access Great People at a Time when Skills are Scarcer than Ever
By 2030, 44 percent of insurance work activities have the potential to be automated. However, emotional, interpersonal, and social skills will also become more critical, especially for customer-facing agents. Insurance administrators need:
- Industry knowledge and experience
- An outgoing yet humble personality
- Attention to detail
- An ability to multi-task
- A customer-centric mentality
- Familiarity with compliance and legal regulations
Amid the current war for talent, insurance companies are at a disadvantage as many people, especially younger generations, simply don’t see insurance as an exciting career path. In fact, 80 percent of millennials say they have limited knowledge of the insurance industry.
When you work with a BPO partner who provides administration services support, you gain access to specialists in the field without needing to make any financial investments in headcount and training – which gives you a substantial cost advantage.
Why Covenir for Insurance Administration Services?
Covenir’s team of subject matter experts brings their years of experience in the insurance niche to bear so you can turn your eye to innovation while still giving your customers the great service they expect and deserve.
Our team takes pride in being part of your team, not just an extension of it. With our help, you can achieve more in less time – without sacrificing quality or results.
Learn more about Covenir’s Onshore Insurance BPO services. Frontline Services, Back Office Support, and Customer Communications options. We’re not an extension of your team, we ARE your team. Talk to us today.
“I definitely recommend Covenir’s services. They are knowledgeable and solution-focused.”
- Darrin Carver, Vice President of IT and Project Management at Mendota Insurance Services