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How Insurance Backoffice Providers Help Insurers Bridge Talent Gap
Insurance is one of the industries that have grown really fast in the past few decades. No doubt it’s the workforce that builds internal capabilities and helps their employer organization reach heights. However, the current situation in the industry is quite the opposite. Insurance employees are leaving their jobs; as a result, the industry is most likely to experience a talent crunch as experienced employees are retiring. Adding to the challenge are millennials who are less likely to choose a professional career in insurance.
According to The Hartford, only 4% of millennials are interested in working in the insurance industry.
Though insurance companies have been taking advantage of the highly effective outsourcing models, in the recent few years, insurers are increasingly turning to outsourcing firms to fight against the anticipated resource crunch. Let’s now go through some experts’ views on how insurance backoffice providers can resolve this problem.
How Do Insurance Back-office Providers Help Insurers Bridge the Talent Gap?
Access to Technology & Skilled Professionals
Loran Marmes, Owner of Medicare Solutions Team
It’s clear that there is a shortage of talent in the insurance industry, but it’s important to see that this problem can be resolved by working with an experienced Insurance Backoffice Provider.
Backoffice providers can help businesses bridge the talent gap by providing access to skilled personnel and cutting-edge technology solutions. By outsourcing non-core functions to a backoffice provider, businesses can free up internal resources to focus on more strategic initiatives.
Collaborating with a reputed insurance backoffice provider helps you realize several benefits including a reduction in operational costs, faster turnaround times for underwriting approvals and claim settlements at lower costs, and improved customer satisfaction scores through better customer experience due to automation. In addition, working with a backoffice provider can help businesses tap into new markets and geographies where they might not have a presence.
Faster Turnaround Times
Brad Cummins, Owner – Principal Agent of Insurance Geek
In insurance, turnaround time is extremely important. Whether it’s getting estimates for coverage, processing claims, or even answering questions. In insurance, turnaround time is extremely important. Whether it’s getting estimates for coverage, processing claims, or even answering questions about the insurance products your company offers, being as quick and as thorough as possible is highly significant.
The faster you are able to get information to people, the more likely they are going to stick with your company, potentially purchase more insurance products from you, and refer others to you. If people feel they cannot count on you for a prompt response or a response at all, they are going to abandon ship quickly, and without them, you have no business, so there will ultimately be no room to grow. This seemingly simple practice can literally be the difference between life or death for your business.
Help Your Employees Learn New Skills
Max Benz, Founder and CEO of BankingGeek
The insurance industry is facing a talent gap. There is a growing need for skilled workers, but a lack of qualified candidates to fill these roles. One way to bridge this gap is to use insurance backoffice providers. Backoffice providers can help source, screen, and hire qualified candidates for insurance companies. They can also provide training and development programs to help employees learn new skills and improve their performance. By partnering with an insurance backoffice provider, insurance companies can gain access to a pool of talented workers who can help them meet their business needs.
Improve Service Quality & Increase Customer Satisfaction
Maria A. McDowell, Founder of EasySearchPeople
Through the use of niche technology tools and the latest technological advancements, the insurance software provides an automated tool with an inbuilt ERP that integrates with a plethora of accounting systems, thereby reducing the need for in-house accounting professionals. The software is capable of analyzing data not only from the front end but also from the back end, thereby making it a perfect tool for ensuring risk management.
Turnaround time or processing time is a very important metric in the insurance business. Insurance companies can provide services to their customers with a short turnaround time because processing time also includes time for approvals of claims. Insurance companies can provide a high-quality service to their customers if they can process the claims file quickly. The shorter the turnaround time, the more profitable my company is and the more customer satisfaction my business receives.
Save Costs of Recruitment & Training
Tracy Acker, CEO & Recruiter of GetPaydayLoan
Insurance is one of the essential trades today. There are many types of insurance that people consider. However, there is a talent gap in the insurance sector. Most insurance companies cannot hire and keep all the talent they need in their workplaces. Instead of investing significant resources in staff development and undergoing the recruitment cycle, they access the expertise they need through outsourcing back-office insurance experts.
Another advantage of outsourcing specialized skills is that outsourced talent is more likely to have worked with multiple businesses within their field of expertise. It gives them an array of real-life experiences compared to a similar staff who stayed with one company for the same duration. Technology-based jobs such as business analysts, claims adjusters, insurance underwriters, and actuaries are the most commonly outsourced jobs. Through outsourcing, the company benefits from the talent they would pay for if they hired the professionals. They may also get more referrals from the back-office insurance experts.
They Are a Boon for Insurers
Ashley Amor, PeopleFindFast
I believe the shortage of working professionals in the insurance industry is a reality. Only 36.7% of people choose insurance as their career option. And, many of them leave the industry after working for some years and not seeing the growth potential. We believe that insurance back-office providers are a boon for insurance companies. While working with insurance companies, I used the latest technological innovations to conduct recruitment drives, managed the profitable growth for all insurance agents, offered good employment opportunities to job seekers with excellent payments, helped the existing employees to increase their talent, and was involved in multitasking.
Onboard Diverse Skill Set and Experience
Paul Mallory, Co-Founder of ConsumerGravity
Finding talent to fill the skills gap has been a growing challenge for businesses for many years. This issue is exacerbated by the retiring workforce – the average age of insurance agents is pushing 60, and the younger workforce simply cannot match up to their skills and experience.
In such a scenario, outsourcing insurance back-office providers can be very beneficial, as these professionals will bring a more diverse skill set and experience. Instead of investing resources in developing talents in-house – which can take years – companies can outsource to gain quick access to expertise. This will help bridge the talent gap considerably. Moreover, the existing staff can learn from them, gaining valuable professional insight in the insurance domain.
In the coming few years, most of the employees from the generations “Boomers II and Gen X” will retire, taking along the massive experience and abundance of knowledge. Insurers would find it really difficult to find their replacement, facing a challenge they are not ready for. However, the next best option they may consider is outsourcing. Outsourcing has proven to be a successful strategic approach for many insurance companies and as an insurance business owner, you can also take the utmost advantage of it. At Cogneesol, we are a team of more than 450 experienced and professionally trained insurance specialists. We are in the insurance
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