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Insurance Back Office Outsourcing Myths vs. Facts – Busted!
Insurance businesses have attained prominence in recent times. Almost everyone requires insurance policies, so insurance companies are earning huge profits. But insurance companies are facing stiff competition from each other and are looking for new ways to optimize their business potential.
Outsourcing the insurance back office services has emerged as a great option for insurance companies. Most of the insurance companies are using outsourcing services for their benefit, but still, there are some companies which are reluctant to use the outsourcing services due to some misunderstandings.
Below mentioned are some insurance back office outsourcing myths which have prevented insurance firms from opting for outsourcing services:
Myth: Outsourcing Means Assigning Work to an Offshore Nation
Many insurance company CEOs or other higher management people have a wrong conception that all the outsourcing firms are based in offshore nations like China, India etc., and they cannot be relied upon.
Fact: It is a totally wrong conception. If there is an insurance company based in the US, there is a possibility of it outsourcing its back office operations to a third party firm based in another state in the US at a lesser cost. Outsourcing is basically about getting work done at a lesser cost, it is not necessary that the outsourcing firm would be based at an offshore venue.
Myth: Outsourcing Means Downsizing
Many insurance owners have the misconception that outsourcing the back office services would mean downsizing or it means that the organization is shrinking. This is not the case.
Fact: Outsourcing creates the opportunity to concentrate on the core operations and maximize the revenues. The staff that was earlier used for back-office tasks can be used for the production and marketing related activities.
Myth: Outsourcing Means Compromising on Quality
Many insurance company managements are under the wrong impression that outsourcing means compromising on quality.
Fact: The outsourcing firms based in offshore nations like India, Philippines etc. have built a strong reputation for offering excellent services while adhering to guidelines and time-related constraints.
Myth: Outsourcing Leads to Confidentiality Issues
Many companies don’t outsource their back-office operations thinking that it will affect the privacy of their data. This is a wrong misconception.
Fact: Outsourcing firms make sure that the best security protocols are followed to ensure the safety of client information. The data of an insurance company is as safe at the outsourcing provider’s location as it is at own location.
Myth: Outsourcing is only for Established Companies with Huge Capital
It is true that mostly well-established companies with larger budget opt for outsourcing.
Fact: Even a small company can opt for these services if they can benefit them. Outsourcing can help small companies with fewer budgets to employ their entire staff on production-oriented activities.
Besides outsourcing myths, many more myths are evolving around insurers, which somehow hamper business growth. Thus, here in this video, we’ve debunked common myths that insurance agents fear the most with real facts:
Cogneesol is a well-established provider of outsourced insurance back office services to insurance firms all over the globe. For insurance ventures looking for cost-cutting and revenue optimization solutions, their services are an ideal option. Since 2008, they have earned the goodwill of their clients by adhering to deadlines and maintaining desired quality standards.
For more information, contact us at [email protected] or call us at +1-646-688-2821.
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