In the business area, optimizing processes represents, most of the times, more competitiveness and better return to the market. For this reason, there ever more emerge new tools which enable carrying out these processes in a more professional and specialized manner.
Insurance companies have increased their market share through product diversification and innovation. Although expenses with insurance are becoming increasingly more incorporated to the population’s domestic budget, predictive analyses are currently indispensable and deemed as a basic need for business success.
All this leads to insurers having to use strategies which may place them ahead of the segment. We will talk at this point about one of these strategies: the BPO.
Business Process Outsourcing (BPO)
Business Process Outsourcing (BPO) comprises nothing more than the outsourcing of certain necessary processes to allow for business operation. That is, a company outsources tasks not directly related to its end activity developed, and which need to be performed at a low cost, in compliance with time terms, and with extreme quality. At some companies, jobs such as those involving cleaning, reception, security, transportation, accounting, human resources and even staff catering can be outsourced.
Regarding the insurance area, the outsourcing of services which are not those directly related to the company’s core business, has become increasingly more common. As an example, we should mention the claims department, in charge of regulating processes to indemnify insured parties. Here follows a number of advantages stemming from outsourcing:
BPO advantages for the insurance segment
- Cost reduction
Although the insurer carries out claim indemnification on assets insured by a policy, it is reasonable to consider that, among all insured parties, only a few will need to charge the insurer for compensation during the insurance policy’s coverage period. It is often costly or unfeasible to keep professionals fully engaged with an insurer’s base, either on account of occurrence unpredictability or randomness, as there is no definite demand for the task.
The insurer, with the BPO acting in these processes, may reduce costs regarding the technological infrastructure, physical space, labor charges, brought about by payment of several underutilized professionals, as well as several other things. Service outsourcing will generate savings for the insurer, which will then be able to concentrate investments on its end activities.
- Process Optimization
BPO strategy will also allow for optimizing in-house processes. By deploying part of its services towards an outsourced company, the insurer can focus on essential processes for its development.
An insurer can concentrate on the insurance commercial area, invest more in the marketing sector, and provide for enhancing its market share.
- Specialized knowledge
Certainly, the choice for an outsourced company should privilege those with specialized knowledge to ensure quality in process regulation. Thus, searching for a company exclusively dedicated to the insurance market is the right thing to do for an insurer adopting a BPO strategy.
The outsourced company, relying on the experience of specialized professionals, may therefore provide speedier and higher quality services to clients, who expect expedite, assertive and economical responses.
Learn about the BPO services provided by Delphos, and about the advantages which may arise from this choice!