Outsource claims processing has become a reliable solution for insurance companies wanting to optimize their operation.
Although many try to do the process on their own, they end up giving up and look for other avenues.
There are a lot of factors why many insurers tend to rely on a third-party service provider.
According to a recent study, 64% of insurance company owners think that the rising labour costs is the main reason why they will outsource.
Meanwhile, 48% of insurers feel that scarcity of agents’ key skills affects their quality standards and customer experience.
Thus, they will look for an offshore insurance process outsourcing provider to lend them industry experts.
As you can see, the work of an insurance agent is not just about processing paperworks. It involves a very intricate and sophisticated system in order to verify all the claims.
Aside from these tasks, insurance agents are also responsible with collecting insurance debt from their existing customers.
And they need to be 95% successful most of the time in their debt collection. This is the benchmark in order to recover those funds they paid for other insurance claims.
All these attributes with the rising of labor costs as well as the inferior skills of claim insurance agents.
So, what difference can an insurance outsourcing company make for your business?
The Insurance Business Process Outsourcing (BPO) market share in the US is around US$1.7 Billion as of 2020.
This is the largest in the industry as it consists of 28.81% share in the global market.
With this in mind, let’s take a look at why almost 80% of insurers in the US prefer to work with claims outsourcing companies.
Processing costs and claims payments already take up 80% of an average insurance policy. So, reducing the process time to settle a claim can lessen administrative costs.
It is only logical to shorten these processes since insurance agents spend at least 55% of their time working on these non-core activities.
Insurance outsourcing companies can help you centralize all the information related to a claim. There’s no need to worry about any privacy issue as they can use secure, cloud-based systems.
They can share all the information with your team through the internet. Your policy holder can resolve the claim quickly as everything is already organized for them.
Most of the time, call center companies have access to the most advanced technology available.
So, it is only fitting that partnering with a BPO company could also give you access with this technology. Digitizing your insurance policy claim makes your business adaptable to the future.
Moreover, customers at this age expect digital claims to function as a standard operating procedure.
By doing this, you can see an additional 20% improvement in your customer satisfaction scores.
On top of that, outsourcing for insurance companies means you no longer have to worry about maintaining and upgrading your software and other digital tools.
As a result, you can save up to 25% to 30% in your expenses.
Outsource claims processing is one of the most critical processes for any insurance company. The process can be a stressful experience for policyholders.
Of course they will not file any insurance claim if nothing bad happens. Like an ill individual trying to file a medical billing and claims processing. Even a natural disaster resulting in a claim on their homeowners’ policy.
You might not want to add stress on their part if you still want their business in the future. That’s why you must make the claim process convenient and easy for your customers.
When you outsource this function, the third-party service provider will guarantee a customer-based service. They trained their agents to handle stressful situations for your customers.
Empathy and accommodation of your customer service reps will help alleviate the situation. Consequently, your policyholders will still use your insurance service in the future.
Out of all insurers in the US, around 42% of them operate in the property and casualty insurance (P&C) industry.
It is actually understandable since many policyholders worry about the safety of their mortgage investment.
On average, there are 6 to 10 hurricanes to occur in the US yearly. These hurricanes can certainly damage their property. This is where claims handling companies can help them.
Another top insurance niche in the US is the medical claims processing business. It consists of 15% of insurers in the country.
Just like the P&C industry, the American thinks that investing in their medical claims processing services could help them secure the future. The US spends around $11,582 per person on their insurance claims.
If you’re an SME looking to outsource claims processing then go to Magellan Solutions. We have more than 18 years of experience assisting many industries with their BPO needs.
Besides claim processing, we can work with other back-office function of your insurance company such as:
We are an ISO certified BPO company that strictly follows a high standard of service from recruitment to on-boarding process.
Besides that, we guarantee a fortified protection for your data. Our tech support team has different security protocols to prevent online breaching.
Our Business Developers can help you in setting up your key performance indicators (KPI). KPIs will guide you and monitor the progress of your business with us.
We also offer guaranteed flexible pricing options based on several factors like service and number of agents you need. Magellan Solutions understands that start-up businesses have limited funds in outsourcing services.
Contact us today and get a free 60-minute business consultation. Please fill out the contact form below.
Contact us today for more information.
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