Insurance Business Process Outsourcing (BPO) has constantly advanced to meet the ever changing market requirements. In the past, the need was for data entry and call center representatives. Today, there’s growing anticipation and impetus surrounding new automation capabilities and the opportunities this will provide for insurance-focused business process outsourcing (BPO). What are the Services provided by Insurance BPOs? An Insurance BPO can support insurance organizations by handling numerous tasks across the Insurance policy lifecycle, like: The submission-to-issue process Policy servicing Claims handling Renewals Accounting Quality assurance By providing dedicated BPO staff to carry out these tasks and processes, Insurance BPO providers help organizational teams dedicate more time toward servicing clients and growing their insurance business. In addition, leveraging outsourcing can enable you to benefit from insurtech capabilities, like robotic process automation, while avoiding the significant cost of developing and maintaining them. Insurance BPO Models Traditional BPO Model: Traditional business process outsourcing is when a company outsources certain tasks to the BPO provider. The tasks are then completed in accordance with defined SLAs. Tasks are performed by trained staff, who are generally located offshore where wages are lower and talent is easier to find, though onshore outsourcing can also have cost savings. Insurance providers are then able to execute their processes at a lower rate, saving money without sacrificing quality. Transactional BPO Model: The transactional model is about resolving specific issues, such as bottlenecks in processing. These often occur when a business is growing rapidly and has yet to expand their project management framework, causing a stall or limit in production capacity. Transactional BPO is ideal for: - Processing a large influx of claims - Sorting through backlogged policy checking - Auditing records for compliance. Strategic Insurance BPO Model: By taking a strategic approach to outsourcing and operations, improvements are made to the entire infrastructure, rather than focusing solely on a wage arbitrage play. This is the most efficient model due to the following benefits: The right people, with the right skills, doing the right jobs Optimized Processes for better accuracy and efficiency Implementing the necessary tools and technology Alza Business Solutions applies the strategic approach within the insurance industry. With this approach, it’s not enough to complete a given process at a lower cost, it’s about improving and standardizing that process so it’s more efficient, accurate, and aligned with organizational objectives. When insurance organizations take a strategic approach to operations, they open the door to profitable growth. Business objectives and goals aligned with operations can be achieved more easily; staff can focus on higher-value work; processes are more accurate and efficient, reducing or even eliminating non-compliance exposure while improving service levels; and sales teams can capture more opportunities.