A shortage of talent is a challenge for every business in every sector right now, and insurance isn’t exempt:
- Filling open positions and improving employee retention are two major concerns facing insurance firms.
- Some 55 percent of insurance executives see talent acquisition as a key barrier to growth.
Today’s insurance job seekers have the power to choose who they work for, which means building a compelling employee value proposition is vital. Simultaneously, you need to look after the employees you have. Putting undue workload pressure on internal teams in an industry where high compliance standards, accuracy, customer service, and efficiency are crucial isn’t a wise move.
Fortunately, outsourcing is a simple way to sidestep these issues and ease the burden on overstretched employees.
Or is it?
Unless it’s approached carefully, outsourcing could result in you damaging your relationship with your other key asset: your customers.
In this article, we’ll consider some ways you can benefit from outsourcing without putting your hard-earned brand reputation at risk.
What Are Insurance Administration Services?
Insurance administration includes a range of tasks associated with managing the daily paperwork and details of the insurance lifecycle, such as:
- Policy management
- Claims management
- Data entry
- Insurance billing and accounting
- Insurance reporting
- New business services
Why Outsource Your Insurance Administration?
The most obvious reason for adopting an outsourcing strategy is to save money. According to a recent report by Deloitte, 70 percent of companies that opt to go with an outsourcing model do so to reduce costs.
However, the benefits don’t end there. It can take many months to hire just one new employee. When you hand over part or all your insurance administration tasks to a business process outsourcing (BPO) partner, you benefit from immediate access to professionals who are trained and experienced in these areas.
In addition, when you outsource the more mundane aspects of insurance administration, you open up opportunities for your internal teams to work on critical (and more exciting) business activities. In turn, you don’t need to spend time and money trying to recruit new employees to perform those tasks.
What Are the Potential Risks?
If you’re considering outsourcing, it’s important to consider the real risk of damage to your brand reputation. Many of the administrative tasks your BPO partner will be performing can directly impact your customers’ experiences. It’s critical to select a partner that will uphold your unique brand voice and provide the service levels your policyholders expect.
You should also communicate your plans to your internal teams and ensure they feel respected and understand your reasons for adopting this model. The last thing you want is for them to feel overlooked or sidelined.
Selecting the Right BPO Partner and Protecting Your Brand
Here are some factors to consider when selecting an outsourced insurance administration partner:
- What are others saying about them? Check out recent reviews of each potential BPO firm on the internet.
- Are their administrators certified? You need to be sure your partner employs administrators with specialist knowledge of the insurance field.
- What are their engagement and operating models? Will they incorporate your firm’s rules, systems, and processes into their approach to ensure seamless workflows?
- How flexible are they? Ideally, you want a partner that gives you the option of full administration support or only those services that will best benefit your business.
- Do they offer value for money? Compare prices, but don’t outsource your tasks to the cheapest provider. Remember, you get what you pay for!
Once you’ve narrowed down your shortlist, why not start with a trial run? This way, you’ll get a chance to experience their administrators’ work quality and customer service ethic firsthand. You’ll be able to observe how accurate and timely they are in delivering projects. You’ll also have a chance to see how they integrate with your internal team members.
Ultimately, you want people who are willing to align with your culture, engage meaningfully with your internal teams, respect your customers, and take up new learning.
Insurance Administration Services from Covenir
Covenir prides itself on being technology-centric but human-enabled. Our insurance administration team takes pride in being part of your team, not just an extension of it.
We help you achieve more in less time and at a lower cost – without sacrificing quality or results.