The insurance companies have to deal with an exceedingly competitive environment in the present scenario. Apart from the challenges of stiff competition from rivals, they have also to deal with the new regulations imposed by the government. In such an environment, outsourcing has emerged as a major option for reducing the costs and improving the efficiency of the organization. Insurance policy administration is one of the key areas which can be outsourced to third party organizations. This can ensure:
- Reduction in operational costs,
- Easing the financial reporting process and
- Enhance revenue earning opportunities.
The various benefits of outsourcing insurance policy administration have been discussed below:
Helps in removing complexity and accelerating benefits – The business process outsourcing solutions generally have a ‘lift and drop’ approach towards closed book outsourcing. With a onetime data migration phase the insurers can have a proper road map to benefits and cost transparency. All the uncertainties and complexities will be removed.
Accesses to Oracle insurance policy administration – Most of the outsourcing companies use Oracle for this purpose. This helps in making the working of the insurance enterprises more flexible and dynamic. This will ensure maximization of customer benefits and gaining an edge over competitors. The outsourcing companies also use latest service oriented architecture for managing insurance policies.
Access to an expert team – The outsourcing firms possess an extremely proficient staff and also have access to latest software. They are also well trained and remain in touch with the latest developments in the industry. So by outsourcing the services, you will have access to an expert team without having to actually hire or maintain them.
Cost cutting – When you outsource tasks to a third party organization, you have to only pay for the number of hours they have worked for. Whereas you have to pay regular salaries to in-house staff and also spend on infrastructure. Moreover the remuneration charged by outsourcing firms based in developing countries is much less in comparison to local rates in developed countries.
Easier to handle – Outsourcing services are much easier to handle then hiring an in-house staff. While outsourcing services, you have to only manage the contractual obligations. Whereas keeping an in-house staff involves recruitment, retaining, training and motivating the employees. The time saved on such activities can be utilized on more significant activities. In this way the revenue earning potential of the organization can be optimized.
Striking a balance between opportunity and risk – The outsourcing companies offer a structured analysis which will help the higher management to keep a balance between risks and opportunities. This professional approach to analysis and deployment help the business in achieving success over a long period of time.
Proper data migration – The outsourcing companies can easily consolidate and upload data on a new system. This process is achieved automatically by using latest software.
All these points have been mentioned to help the insurance companies in realizing the advantages of outsourcing insurance policy management. But it is up to the higher management to make the final decision regarding what is useful for them.
Cogneesol has emerged as a leading provider of outsourced policy management to business organizations from all over the world. For more information contact us at email@example.com or call us at +16466882821.