Some companies have in-house teams and bear more expenses, while others seek external professional help to manage their core processes. And by doing so, they end up saving time and costs.

This is where Business Process Outsourcing or BPO comes in. Insurers have always benefited from insurance BPO service providers. But due to the ongoing pandemic, outsourcing has become a necessity instead of an option.

Before we dive into how outsourcing can help insurers steady their operations, let us first understand COVID’s impact on insurance businesses.

COVID’s Impact on Insurance Businesses

 Due to the pandemic, insurers are facing many challenges, both in terms of growth and operations. Some of them are listed as follows:

 1) Negative Impact on Investment Portfolios

In order to generate returns, insurance businesses mainly depend on their investment portfolios. However, due to the current economic crisis, these portfolios have been hampered. Moreover, there has also been a drop in reduced interest income revenue and interest rates.

 2) Pending Payments

Despite liquidity facing severe impact, many insurance companies are expected to pay out claims. Also, insurance regulators are asking insurers to welcome delayed payments without penalty in the pandemic, thereby affecting the cash flow.

 3) Lowered Premium Value

The lockdown has caused many businesses to completely or partially shut down. Due to this, employees’ compensation has been reduced. This includes payroll-based premiums and buying houses, cars, and more with insurance.

 4) Rising Coverage Disputes

Many insurance policies may not cover the pandemic situation. This is leading to dispute since many people are falling ill.

 5) Dealing with Queries

People who own coverage, be it for business, health, or travel, are having many queries during the pandemic. Dealing with a plethora of customer queries, maintaining loyalty, and satisfying them can be challenging for insurers.

 6) Workforce Shortage

Since India has been severely impacted by the pandemic, many insurers are facing a shortage of staff. Seeking help from reputed insurance BPO companies in India is the need of the hour.

 7) Mitigating Fraud Claims

Many fraudsters are filing for fraudulent claims regarding travel, health, and other types of coverage. Lack of staff and work overload can make insurers less capable of dealing with fraud claims.

 8) Lack of Resources for Remote Working

Remote working can enable employees to handle most processes. However, not every employee is equipped with resources like a laptop, a good internet connection, and more. Investing in such resources during a pandemic is not feasible for insurers.

 How can BPO Help Insurers Overcome Challenges?

1) Back-Office Support

Insurance BPO providers can help with managing back-office processes such as:

• Policy management
• Insurance reporting
• Business servicing
• Customer support
• Dealing with fraud claims
• Claims administration
• Insurance accounting
• Data management & research
• Commissions management

2) Skilled & Experienced Workforce

By outsourcing to a trusted agency, you have a fully-fledged team of experts working for you. This way insurers can:

• Meet staff shortages
• Explore new sales channels
• Improve customer retention
• Focus on cross/up-selling.

 3) Cost-Saving

By outsourcing, insurance companies can save on infrastructure, in-house teams, set-up expenses for remote employees, and technology.

4) Technical Edge

A reputed and experienced BPO provider will have the best technical team with advanced IT infrastructure to ensure your digital needs are met during challenging times.

5) Time-Saving

When back-office processes are outsourced and managed by experts, insurers can not only save a lot of time but also utilize it for focusing and improving core competencies.

6) Research, Analytics & Lead Generation

When outsourcing research, analytics, and the lead generation process, insurers can expect guidance for calculating accurate premiums, optimized pricing models, and qualified leads by targeting customers based on groups, risk profiles, and demographics.

7) Enhanced Data/Cybersecurity

Remote working comes with a risk of data loss. However, by outsourcing, insurers can reduce the risk significantly since BPOs have the best cybersecurity tools and data safety protocols in place.

8) Customer Support

BPO models are largely based on providing top-notch customer support. During challenging times, insurance companies can depend on BPOs to retain clients and respond to queries on time.

Final Thoughts

Due to the pandemic, insurers are struggling to claim disputes, solve client queries, and function with a limited workforce. Outsourcing is one of the best ways to overcome these challenges and help insurers ensure smooth business operations during the pandemic.

Searching for a renowned insurance outsourcing company in India? Meet Kserve! We have been providing quality insurance back-office outsourcing services to insurers for the last 18 years. If you have any queries, feel free to connect with our experts today!