Business Process Outsourcing Services are an Insurance Company’s Greatest Ally
October 22, 2018 Categories: Industry News, Printing Tags: BPO, business, business process outsourcing, Compliance, customizable, data, digital, documents, financial process, insurance, mail, outsourcing, print
Insurance document management is no easy task. Many growing insurance companies are still printing their policyholder information in-house. While this method may seem more cost efficient, in-house document processing creates problems for businesses that need to keep up with constantly changing compliance laws and regulatory requirements.
The solution? Insurance business process outsourcing (BPO), which is a worthwhile alternative for using internal business resources to handle document processing. Companies that choose to utilize BPO services gain the peace of mind that the production and delivery of their policy notices remain compliant. BPO services also offer improvements in overall business processes and reduced operational costs.
What is Business Process Outsourcing?
Before we look into specifics, we must first start with a basic question – what is business process outsourcing? Also known as BPO, business process outsourcing is when a company hires a third-party provider to handle a variety of its day-to-day operations.
BPO started in the manufacturing industry, but in recent years, has spread to many other industries, especially insurance. The insurance industry continues to grow as insurers continuously look for growth opportunities and ways to improve operational efficiency. BPO has evolved from being considered a risky business strategy to a widely-accepted mainstream choice by a growing number of insurance providers ranging from auto and home to health insurance.
With the insurance industry showing steady growth for the first time in years, and an estimated three to four percent increase projected by the end of 2019,* many insurance companies are looking to capitalize on this upward financial trend. The result is to make sure that their business operations are running as efficiently and effectively as possible, leading to an increase in BPO practices throughout the industry.
Types of BPO Services
- IT Services
- Print-Mail Services
- Customer Service
- Payroll and Payment Processing
- Product Research and Quality Assurance
Benefits of Business Process Outsourcing for Insurers
Let’s take a deeper look at a specific outsourcing service, BPO printing. We’ll investigate the advantages of outsourcing can have on the growing insurance industry and your company’s operational health. This will lead to more effective documents and better use of company resources.
- Flexibility & Scalability: BPO companies give insurance agencies great flexibility to adjust to competition and changes in regulatory compliance, allowing them to adjust to changing market conditions.
- Reallocation of Resources: Lets your employees focus more on the core competencies of your business.
- Manage Compliance, Regulations, and Reporting: Print management companies have cutting-edge security, technology and reporting tools to stay on top of compliance management.
- Access to New Technology and Resources: Interact with customers in new ways, on multiple channels, and be more efficient and secure than ever before.
- Cost Savings: With higher operation efficiency comes lower costs. A BPO Service provider can not only save your company operating costs but can also offer tax savings.
- disaster recovery and Data Backup: BPO offers data backup, and DR plans that keep your customers’ data safe and secure even during a power outage or other data breach.
Flexible and scalable outsourcing services adapt to your business
BPO services work for your company, meaning that these services can be customized to fit your specific business needs. As your company experiences peaks in business and overall activity, outsourcing providers can easily increase their own production and evolve with changing demands. Having the ability to scale up or down, business process outsourcing can help your company remain agile and meet your growth needs.
Reallocation of resources allows teams to focus on the business
Businesses can’t grow without the combined effort of its employees. As insurance demands grow, you want your staff free to drive business efforts, without having to spend resources on clerical tasks. The time saved by outsourcing insurance document production is invaluable. With the burden of managing and processing documents in the hands of a third-party provider, your employees can focus on important business initiatives.
Manage compliance and regulations with cutting-edge reporting tools
As insurance law and regulations change, your business will need to continually update its internal, and customer-facing documents and forms, in addition to overall processes. An effective BPO service provider should have tools that make adjusting your content easy and also allow you to check on the production and delivery status of any insurance document in real-time, keeping you in the loop at all times.
Access to new technology like digital documents and omnichannel communications
According to Western Union, 66% of customers prefer to receive their bills as electronic statements. With 72% of all consumers accessing electronic documents on their smartphones, it has become increasingly important for companies to meet their customers on these platforms. Partnering with a third-party business process manager helps to streamline billing procedures. Presenting customers with electronic bill presentment and payment options increases the speed in which customers access data and remit payments. Many print management providers can integrate their payment portal with your company’s online service platform, providing an important touch point with customers and helping to keep them engaged with your business.
Reduce overall business costs and communicate more effectively with customers
According to ComputerWorld, large-scale companies, like Ford Motors, spend an estimated $40 to $50 million on in-house printing. While your insurance company’s spending may not be as high, it is impossible to ignore the high costs associated with in-house document processing and printing. Outsourcing your print-mail and customer communication processes significantly cut business expenses and helps you more effectively communicate with your customers. In fact, businesses can experience as much as a 30% decrease in printing costs by making the switch to a third-party managed print provider.
Built-In disaster recovery and Redundant Backup
In the event that your business experiences data loss, business process management providers offer backup services of your company’s data and customer information. By outsourcing your insurance documents, your business can stay up and running, even in the event of a power outage or server failure. In fact, the BPO should have a formalized disaster recovery (DR) plan in place, which is regularly reviewed and updated.
While “outsourcing” is commonplace in the business world, it’s hard to ignore the benefits of outsourcing for the insurance industry. Simply put, outsourcing your insurance documents increases company efficiency, streamlines operations and decreases the cost to your business.
If you would like to learn more about how FSSI can assist with insurance business process outsourcing, call 714.436.3300 or reach out today to learn more.
*Ernest & Young’s Global Insurance Trend’s Analysis 2018