The road ahead in 2022 is quite challenging for insurance carriers. Stringent regulatory requirements, insurgence of tech-first insurance vendors, volatile socio-political environment, expense management among others are some of the factors that will pose as significant challenges in the insurance industry.
Insurers are turning to insurance BPO providers to mitigate these evolving challenges while retaining operational resiliency and cost efficacy.
On this note, here’s looking at the role of insurance BPO providers in 2022.
Top 4 Reasons Why Insurance BPO Providers will be Important in 2022
D2C Sales Model
In the digital era, consumers prefer to do their own research and buy directly from insurers without the involvement of a middleman. This led to the popularity of the D2C sales model.
Insurance BPO providers will act as virtual ambassadors of insurers. They will be the key POC for customers to get all kinds of information on any particular insurance product. Responsiveness and knowledge of insurance BPO agents will play a key role in helping customer arrive at a purchasing decision.
Product Innovation
Insurers have set product innovation as one of their top priorities in 2022 to cater to evolving customer expectations. This necessitates reallocation of resources from their core duties to other strategic business discourses.
However, the insurance industry is staring at a severe staff shortage. This is because more than a quarter of the total number of insurance employees across the globe is set to retire this year. Inevitably, this will create a resource crunch which will hinder insurers’ product innovation strategy.
Insurance BPO providers have resources working across multiple locations and at different time zones. This will enable them to provide resources and compensate for the staff shortage. These resources execute the entire backend operations. This frees the internal staff who could be allocated to ideate and develop innovative insurance products.
Claim Management
Each claim processing file goes through multiple departments for a range of functions such information verification, checking coverage validity, and others.
This prolongs the process and ultimately results in customer dissatisfaction. Insurance BPO providers have resources that have expertise in the claims management domain. Such insurance claims business process outsourcing resources execute all the backend processes involved in insurance claim management that brings more acceleration and efficiency in the entire process.
Regulatory Adherence
In 2022, state and federal regulators will issue more rules that are in the best interest of consumers.
Insurance BPO providers generate timely reports on processes. These reports create an audit trail which insurers will follow to demonstrate their adherence to regulatory requirements.
Conclusion
Insurers must make a careful choice while partnering with third-party vendors. The signs of the best insurance BPO are multiple communication channels, service scalability, round-the-clock availability, domain knowledge, support for faster product implementation, among others.