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What Insurance Services Can a Business Outsourcing Company Handle?
Insurance companies the world over are facing serious challenges in coping with the current business scenario – recession, reduced margins, an uncertain economic outlook and strict regulatory policies of different Governments.
In such circumstances, the need of the hour is to focus on core activities and spin-off back-office processes to specialists in the field. This will not only be a cost-cutting measure as it will insulate insurance companies from huge investments in infrastructure development, it will also give them a competitive edge and more ROI on marketing spend.
Therefore there is a need for outsourcing insurance services, more specifically back-office services. Then what are the key areas that should be delegated to insurance outsourcing companies for optimizing operating efficiency?
Data Processing Services–
This has huge ramifications especially in this Internet-fuelled age where quick access to data is as important as its security. Data entry is the most important component and outsourcing of this activity alone can lower administrative costs by over 40% while ensuring 99.9% accuracy. Data mining is another crucial module of insurance outsourcing.
It is a process of analyzing and collating data from diverse sources and preparing reports that form the basis of important business and policy decisions. In the case of insurance outsourcing, such information from all over the world helps in judging which schemes are well received, which ones are not capturing expected market share and which ones should be discontinued.
Forms Processing Services –
This is a major non-core activity that constitute a bulk of the insurance sector and which is almost always given to outsourcing companies for maintenance. The number and types of firms are virtually limitless – market research forms, insurance application forms, claim forms, medical forms, tax forms, HR and Payroll forms, and legal forms to name just a few.
Processing them is a huge routine task that does not require any special skill sets or decision-making powers. It is a monotonous and clearly a clerical activity. To quicken the process and make it almost hands-free outsourcing companies are installing robotic process automation (RPA) software that goes a long way in taking the tedium out of the work. Any business outsourcing company with this specific software will steal a march over others in the outsourcing industry.
Outsourcing Policy Management Services –
While devising new schemes and policies fall within the ambit of core activities, processing them and keeping a track of the policy holder right till claims processing requires no special capabilities. We outsource policy management to increase operating efficiency through reduced investments in hardware and software and a number of staff. Once a policy has issued all work related to verification, validation and changes can be taken up by the business outsourcing companies.
These are the key insurance back-office processes that are being outsourced today along with other minor functions. The focus today is solely customer-centric and all other tasks are being relegated to the back-burner of outsourcing.
Cogneesol can give you support with numerous processes such as forms processing, insurance data processing, policy management, and many more. Contact us to know more about our insurance BPO services, call at +1 646-688-2821, or send an email at firstname.lastname@example.org.
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