Insurance business process outsourcing is the contracting of certain business processes to an outsourcing company.

With an insurance BPO, companies can concentrate on core competencies after handing over back office services like:

• Data entry
• Claims processing
• New business service
• Commission management

In this article, we’ll discuss how hiring a business process outsourcing firm can benefit your business.

There are several factors to consider when selecting an Insurance BPO Service Provider. The considerations may vary depending on the areas you are looking to outsource, but overall, we believe there are five key factors for an insurer to consider when looking to work with a business process outsourcing (BPO) provider.

Competencies

It’s vital that insurance firms should find the right match with regards to the capabilities and experience when choosing an Insurance BPO. Check out the past clientele of the BPO provider; understand their experience in the insurance field; and lastly get a clear view of their business and operational processes.

Industry Knowledge

A BPO partner who is primarily focused on insurance and who has licensed insurance professionals on staff is typically a better fit for most insurance organizations - as their offerings and processes will be optimized for insurance. Working with a partner who understands insurance is especially important with today’s focus on the customer experience.

Organizational Culture

 A BPO provider acts as an extension of your team and your brand so it’s important that there is a cultural fit between an insurer and the BPO provider. Insurers should confirm that the provider is aligned with their values, mission statement and quality of service. To understand if the culture is engrained across the organization so it’s important to meet members of the provider’s team to understand how much emphasis is placed on culture.

Technology and Infrastructure

 A BPO provider should bring the latest technology to its customers. With the demands from today’s insured including the need for instant information access and quick response times, one must select a BPO provider who can meet these demands. Also, a provider should be willing and able to utilize an insurer’s technology as needed for any services they are providing.

Onshore / Offshore / Nearshore

Typically, BPO providers are either onshore or offshore. Few may be a hybrid of onshore and offshore. It’s important for insurance companies to use either of the above providers as long as the Insurance BPO Service provider understands the US insurance market, have a fluent English speaking team, and understand the culture. Economic factors also come into play, as offshoring is a more cost-effective solution as compared to Onshore and Near shore.

Outsourcing your insurance processes can help you manage operations economically while accessing skilled talent from around the world. And once you’ve partnered with the right BPO partner, you’ll be able to reap the benefits of insurance business process outsourcing in no time. Download the Alza Business Solutions brochure for more details.