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BPM Solutions: The Path Toward Growth for Insurance Agencies
Insurance is not an easy business to run as there are several processes and departments to manage. Insurance agency owners know that a lot has been changed over the years, but the back office has remained the same. We can define it as a part of the organization typically run by non-client-facing administrative personnel.
Also, despite being an important and highly supportive business area, it doesn’t generate direct revenue and includes functions such as billing, accounting, claims processing, IT infrastructure, compliance management, and some more.
According to McKinsey – 80% of satisfied customers are more likely to renew their policies than unsatisfied ones. Thus, agencies delivering the best customer experience consistently tend to grow more profitably and faster.
The Need for a Fruitful Growth Strategy
Agency owners looking to grow must understand the importance of implementing and successfully executing effective growth strategies that will help their agency to excel.
Most leaders see delegation as one of the key factors influencing growth; however, they usually delegate responsibilities within their agency, limiting the horizon of opportunities. Whereas having a dedicated partner providing insurance BPO solutions can broaden the scope of better and effective delegation.
Such a partnership can bring high levels of flexibility and scalability needed to optimize back office functions and capture new market opportunities, taking your agency to overall business growth.
How does an Insurance BPM Firm Help Your Agency Grow?
Insurance BPM Enhanced Customer Service
Today’s insurance consumers have customer service expectations different from what they had a few years ago. Either we talk about potential buyers or policyholders, they all expect to speak with an actual customer service representative through the most convenient channel (call, email, chat, etc.). And they expect the same level of service (friendly, helpful, and tailored to their needs) round-the-clock throughout the year. In fewer words, they expect exceptional services regardless of the volume of calls your agency gets.
As an insurance agency owner, you can get assistance with customer service from a firm offering quality insurance back-office support. Such a partner can help you meet customer expectations, all while using your company’s standard script and branding guidelines. These services can be used to provide additional support to your in-house team, especially in times of high call volumes, or staff shortage, or other disruptions, leaving no room for growth obstacles.
Better Policy Generation
Your underwriting team often also needs support, for instance, in managing special projects, or a specific business line, or simply in processing endorsements. No matter what the need is, a reliable insurance BPM company can help with policy generation and relevant functions. You can partner with a multi-line insurance BPM service provider and utilize their support solutions easily and quickly in order to;
- Update and manage electronic and paper records
- Process renewals, endorsements, and cancellations
- Manage short-term, special projects
- Get highly professional underwriting support
More Focus on Product Launch with Insurance BPM
Insurance is one of those heavily regulated sectors, which makes an insurance carrier or agency go through multiple phases before launching a new product or service in the market. You can not build a product today and start selling it the very next day. Launching new products takes time, sometimes months. Since your teams are already occupied handling various back-office functions, they might not get time for new products’ development and launch.
Delegate some repetitive and tedious jobs to a responsible insurance back-office support; that way, your talented staff gets more time to focus on rolling out products taking less time, ensuring your agency doesn’t miss out on any growth opportunity in hand.
Faster Premium Collection
You would already know how important it is to process premium payments accurately and timely. Any error, mistake, or problem in this process can lead to incorrect accounting details, costly adjustments, and dissatisfied customers.
Here, an insurance back office service provider can help you set up a new or improve your current premium collection into a compliant and secure process. You may look for a firm offering premium collection and transactional data entry services, helping you get rid of manually handling checks and entering data into the system. With a reliable external team, the premium collection becomes easier, effortless, and faster.
Moreover, this has become more relevant in the current times when many insurance agencies are operating in a remote work environment. When you get payments on time, you get more time to plan your capital for investments.
Improved Claims Services
If a customer initiates a claim, any delay (due to lack of information or them being transferred from one representative to another) can turn their bad day into worse. Therefore, you should take the customer from the first notice of loss (FNOL) to settlement in a smooth manner; otherwise, the entire claims process can go wrong. Consequently, the insured might switch to one of your competitors.
The claims process is usually the deciding point for the company-customer relationships. Thus, to ensure your customers stick to you (adding to your agency’s growth), you may need a partner providing you with outstanding back office support round-the-clock. Having an expert firm handling claims for your agency, you can rest assured knowing each claim is dealt with while keeping complete attention and security.
Effortless and Flexible Scaling
Are you confused about choosing what to do first – launching a new product or expanding your staff?
If you choose to hire more employees without knowing if your product will perform well in the market or not, you might experience an increase in expenditure. Similarly, suppose you have a shortage of staff and cannot provide satisfactory services to new customers. In that case, your product launch may fail to meet customer expectations, leading to the loss of new business opportunities and product demand.
Having an insurance BPM firm on your side, you can deliver exceptional services without investing in recruitment, training, or equipment required for managing processes and services, even before and after a product launch.
Keep Distractions off your Path Toward Growth
Like many other businesses, your insurance agency might also have its core values, cultures, mission, or a vision toward growth. You must adhere to these and relevant policies, but many times, due to excessive workload, you might not get enough time to ensure your agency’s foundation is solid strong.
Anything that diverts your focus from the big picture you visualize for your agency is a significant distraction. Maybe that is the reason why many insurance companies and agencies are increasingly knocking on the doors of firms offering insurance BPM solutions. You may also find a reliable provider that promises to provide quality services, helping your staff get more time to focus on meeting your organizational goals. Such a partner enables you to focus on accelerating growth because that is what matters to your agency and stakeholders.
With a great and dedicated workforce, you are running a successful agency, and now you are all set to take things to the next level. However, the common problem here is that you might face limitations while striving for growth. With the ongoing global pandemic, obtaining growth has become more challenging, and nowadays, more than ever, it is crucial to focus on building and implementing practically proactive growth strategies for your insurance agency in 2021 and the years to come.
BPM solutions are one of the best ways you can optimize and monitor processes in the long run. Regardless of your agency’s unique requirements, at Cogneesol, we empower you to enhance its operational efficiency, performance, and productivity, providing a competitive advantage. With our customized solutions, you can rest assured as we can optimize insurance operations and processes, ensuring your agency consistently keeps moving toward and obtaining growth.
To learn how we can help you unlock growth opportunities for your insurance agency, get in touch with us today. Call us at +1 646-688-2821 or email at [email protected] to talk to our experts and learn about our services in detail.
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