Insurance support offshore outsourcing is the subcontracting of typically non-core insurance activities to a third party. These activities include day-to-day back-office tasks like policy checking, data capture, data entry, archiving, insurance customer service, insurance IT helpdesk, and many others. Many insurance companies face cost pressures, regulatory changes, and global competition, leading them to offshore outsource insurance support. Furthermore, the consolidation of regional and national insurance providers has also driven the growth of outsourced insurance services. Insurers recognize the need to focus on their core competencies and business growth, which requires them to entrust non-core functions to specialized professionals.

Many firms see insurance support outsourcing as both a cost reduction and strategic business tool; some companies outsource support functions to gain competitive advantage while controlling costs, while others outsource support to extend the functionality of their in-house insurance departments. By offshore outsourcing routine insurance functions, the company can reduce operating costs, streamline internal processes, improve speed to market of insurance products, improve cash flow, improve customer service, and become more agile. Insurance support offshore outsourcing also frees up time so that internal staff can focus on core activities that drive revenue.

The insurance industry was one of the earliest adopters of outsourcing business services. As the market has matured, clients have shifted their focus towards deriving value from offshore outsourcing engagements for insurance support. Initially, outsourcing in the insurance sector was driven by a desire to enhance efficiency and reduce costs. However, today, companies collaborate with insurance providers to foster innovation and enhance the customer experience while remaining cost-effective.

An industry survey found that over 60 percent of businesses in the United States outsource at least one department. have already outsourced some business processes, and more than 50 percent are seeking vendors with expertise in key areas. Currently, approximately 33 percent of companies in the life insurance field outsource more than 50 percent of their assets.

How an Insurance Support Offshore Outsourcing Provider Can Help

Insurance providers have made progress in enhancing the value of their offerings, however, many vendors continue to primarily offer transactional and insurance support services to their clients.Vendors apply sophisticated technology and best-in-class processes to streamline existing data/document processing and customer care workflows. For example, an insurance support vendor may provide document validation and editing services to fill out missing information in new policy applications and ensure accuracy and completeness of all forms. Document checking speeds up processing and reduces the amount of rework for insurance carriers. The vendor may also offer digital mailroom solutions either on-site or off-site, allowing insurance documents (both electronic and paper) to be efficiently processed at the front end for immediate data capture.

A third party provider can be a powerful ally for an insurance firm in the process of digital transformation. According to a study, one out of three life and annuity carriers is seriously considering replacing their legacy administrative systems. Maintaining and training people to use outdated systems not only requires significant investment; they also slow speed to market for new products and inhibit business growth. The absence of a modern administrative platform can put off 21st century customers used to fast service and multi-channel systems. Third parties offer many technology solutions that address these problems. Mobile and digital document intake is an example, which can reduce processing time by up to a week, making it easier for agents to grow the business.

Customer Service in Outsourced Insurance Support

Customer service is another area where insurance support providers can improve organizational efficiency, as today’s insurance buyers are increasingly demanding and expect personalized attention. However, only a few insurers have achieved the desired level of customer service. Third-party insurance support vendors leverage their expertise to capitalize on customer loyalty by deploying agents and helpdesk staff to improve customer experience and engagement at all touchpoints. In addition, they assist insurers in delivering exceptional service across the organization, rather than just in one functional area.

Offshore Outsourcing Insurance Support Services

Most insurance companies prefer flexible outsourcing arrangements that allow them to select the specific services they need and scale up or down easily. Insurance support services offered by third parties range from back-office and IT to front-facing customer support. Support services can be bundled or unbundled depending on the client’s needs. Some commonly outsourced insurance support services include:

Document Processing

Insurers often process high volumes of documents every day. There is a need across the industry for accurate and fast processing of paper and electronic documents such as claims, invoices, applications, etc. Service providers leverage the latest document processing technology and optimized workflows to assist insurers in saving time and resources. They process all kinds of documents and claims, such as medical, travel, workers’ compensation, life, public liability, and more. To facilitate this, the providers sort mail contents by branch and prepare them for scanning in batches. In addition, faxes and emails undergo the same system to extract data required for claims processing. Furthermore, a third-party document processing service enables claims to be processed on the same day they are received, thereby increasing efficiency and customer satisfaction.

Document Management

The document management process involves tracking and processing incoming and outgoing documents. Document management software provided by third parties is usually integrated into the insurance company’s enterprise content management system. The document management software monitors and tracks all electronic and digitized insurance documents within a department or throughout the organization. After insurance documents are processed, internal or outsourced staff can search for, edit, save, download and track documents using the management software. Password protection is used to ensure that data is secure, and permissions allow certain documents to be locked to meet compliance standards. Using third party document management services improves security, control and tracking, and reduces the risk of lost documents.

Digital Mailroom

With a digital mailroom service, insurance documents can be converted into digital form using high-volume scanners, manual data entry, and electronic data capture systems. The resulting digitized documents can be easily stored, retrieved, and delivered to the relevant parties in a timely manner. Third-party digital mailroom services can significantly enhance the efficiency of inbound and outbound mail workflows, while also increasing visibility and control, reducing operating costs, and saving time through the use of automated systems and intelligent data capture. Additionally, digital mailroom services can be conducted either on-site or off-site, depending on the client’s preference.

Customer Support/Call Center Services

Insurance companies recognize that the quality of customer experiences plays a crucial role in driving sales, underwriting, claims handling, and overall profitability. In fact, some of the highest-performing insurance firms in the United States are renowned for delivering exceptional customer service. According to a recent survey conducted by Hubspot, customers who receive excellent service are 93% more likely to return to a business.

Given the complexity of insurance products and the diverse needs of customers, providing seamless and prompt customer service can be challenging for insurers. This is why many insurance companies opt to outsource customer service operations to specialized service providers who have the necessary expertise, technology, and processes to deliver a superior customer experience.

Third party providers help insurers coordinate multichannel customer support centers and provide real-time information to clients using advanced workflows and integrated technologies. For example, systems for sales, underwriting, claims and billing are linked together to enable quick information sharing and simultaneous customer support. For discrete systems, the vendor may manage customer support only for the claims system, while customer support for other policy system is retained in-house. The goal of the service provider is to create a flexible and customizable infrastructure that gives customers the information they need in a timely manner.

Finance and Accounting

Third parties provide finance and accounting (FAO) services to insurance companies to streamline processes, reduce payment cycles, reduce errors, and eliminate bottlenecks. FAO services include purchase order management, invoice reconciliation, exception handling, travel and expense processing, remittance processing, cash posting, and refunds. 

The FAO process begins at the digital mailroom, where inbound financial documents are scanned and imaged for data capture, and then integrated into the firm’s enterprise content management system. By working with a third party that handles FAO services, insurers can improve their daily cash flow, invoice access, and compliance. FAO solutions can also reduce late-payment fees, labor costs, and turnaround times.

Disaster Recovery and Business Continuity

The primary objective of disaster recovery and business continuity services for the insurance industry is to aid insurers in resuming normal operations swiftly after a disaster. Third-party service providers may offer the assistance of claims and disaster management experts to aid clients in developing recovery and continuity procedures, or they may manage the disaster reconstruction program to accomplish recovery objectives promptly and efficiently. These third parties can also provide support for accounting and reconciliation of project costs, maintaining documentation files, performing site visits, and delivering technical support. Additionally, disaster recovery services can encompass end-to-end financial recovery planning, financial documentation, internal controls, risk management, program assessment, disaster closeout, and audit resolution.

Underwriting Support

Third parties provide support services to maintain accuracy and efficiency throughout the underwriting process. Underwriting support services include quote preparation, data processing, message processing, data modeling, data entry, data manipulation, risk capture, technical processing, quality assurance, slip/risk verification, and contract certainty.

Insurance Sales and Marketing Support

Sales and marketing support services for insurers aim to identify new business prospects and drive revenue growth. These services encompass a range of strategies, such as insurance internet marketing, email marketing, social media marketing, search engine optimization, and insurance telemarketing/sales. Internet marketing services focus on attracting online insurance prospects and expanding the client base, while telemarketing services aim to increase lead conversion and generate more qualified leads. Social media marketing engages existing clients and prospects through various social media channels.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

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