Insurance policies give people the comfort of knowing they’ll be financially covered in the event of an unwelcome casualty or loss.
Claims situations are times when insurance companies have a responsibility to perform as promised. Your reputation rests greatly on your ability to settle claims swiftly and efficiently.
Success requires the correct internal technologies, processes, and procedures, not to mention the right people. Claims processing administrators need to have a blend of hard and soft skills. They need to communicate clearly yet empathetically with policyholders, review their claim submissions, gather and verify information, and process claim payments as fast as possible, regardless of how old the policy or complex the claim is.
Outsourcing – A Strategic Option?
Singapore’s late prime minister and founding father, Lee Kuan Yew, famously once said, “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”
Insurance firms have been outsourcing elements of their operations for decades to access additional support and expertise for everything from call center operations to product sales.
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.
According to a recent report, increasing numbers of U.S. insurance carriers are turning to Business Process Outsourcing (BPO) providers to help them navigate a new way of doing business and meet rising customer expectations stemming from the pandemic.
The question that many insurers ask themselves is, “Is outsourcing the critical function of policy administration a good idea?”
Weighing Up the Options
Outsourcing some or all of your claims processing activities isn’t a decision to be taken lightly. It does have its potential downsides, and you don’t want to be one of those businesses that walk away from it after being disappointed with the results.
In this article, we’ll consider some of the pros and cons of outsourcing claims processing.
Why Wouldn’t You Outsource?
As we discussed earlier, the best insurers pride themselves on their relationships with their customers. Unfortunately, outsourcing critical parts of your operations to the wrong BPO partner could mean sacrificing those cherished relationships.
You need to ensure that your outsourcing partner employs qualified, competent, and motivated people. They need to be willing and able to learn your internal systems and processes and, perhaps most importantly, embrace your brand so you “speak with one voice” at all times.
Why Would You Outsource?
You Save on Overhead Costs
While outsourcing claims processing should never be approached solely as a cost-cutting exercise, it allows you to procure the service as required. This can lead to significant overhead savings (for example, office rental, equipment costs, and employee benefits.) You can incorporate those savings into new schemes and pass the benefits on to your customers.
You Can Tap into Specialized Skills When You Need Them
Speed is of the essence in the realm of insurance claims. Another benefit of outsourcing this function is that you get immediate access to experienced representatives fluent in your policyholders’ native language who can help your customers get through their claims process with comfort, ease, and speed. Meanwhile, your valuable in-house resources can focus on other critical functions or business urgencies.
You Gain Access to Ancillary Services
Insurance BPO outsourcing doesn’t have to stop at claims processing. Engaging the right partner can easily extend to all aspects of the customer experience, from underwriting support and print and electronic customer communications to policy renewal and beyond.
Final Words
Outsourcing isn’t always going to be a silver bullet, and it should be approached with thought and care. Claims management and processing encompass a myriad of services, so there may be situations in which the most appropriate model is a hybrid one involving a combination of in-house administration and outsourcing.
Why Collaborate with Covenir for Claims Processing?
At Covenir, we understand that customers become loyal when their insurer resolves their problems quickly and professionally. We’ve built up a team of claims processing experts who are capable of reliably and transparently representing your unique insurance brand on your behalf, cost-effectively and onshore. Our seasoned professionals are among the best in the industry when it comes to thinking on their feet, listening to customers, and meeting their needs.
Our team can assist in the following ways in this critical area:
- Available 24/7/365 for FNOL receipt and claims support
- Expert, empathetic claims services for all types of personal and commercial insurance lines, with deep expertise in auto and homeowners’ claims
- Custom, tailored services to meet your needs
- Extensive onshore industry experience
- Available to extend your team during busy times, after hours, or for catastrophe response
- A flexible, collaborative “test and learn” approach
- Able to support 175 languages
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.