Once upon a time, insurance companies processed insurance claims by pen, paper, and filing cabinets.
This might seem archaic to most modern insurance providers, but those same companies might be viewed similarly in the near future if they neglect to embrace current advances in technology.
A report by PwC noted three core similarities of insurance industry leaders:
- A corporate culture that emphasizes operational excellence, productivity, and cost-effectiveness.
- The ability to innovate at scale
- The ability to execute as a competitive advantage
The following article is dedicated to enterprise organizations either currently using business process outsourcing (BPO) or exploring insurance BPO (Business Process Outsourcing) services for outsourcing a single business function such as insurance claims.
Why Outsource Insurance Claims?
Insurance claims processing companies can significantly benefit from a more streamlined process, from claim to resolution.
Whether you're a medical, home, or automotive insurance company looking for a competitive advantage, the core idea is the same: more qualified talent means a higher volume of incoming insurance claims can be processed.
Effective outsourcing can keep your internal team focused on providing the best possible value to the end customer.
In fact, 70% of insurance CEOs identified the top opportunity for corporate reinvention is to prioritize the customer experience in the next twelve months. Coming in second place is, you guessed it, a transformation of their core supporting technology.
2020 forced the entire world into new challenges, and now in 2023, insurance companies are tasked with the responsibility of maintaining business as usual despite the evolving adverse circumstances.
Benefits Beyond Cost Efficiency
The most obvious benefit of outsourcing insurance claims is cost-efficiency. After all, saving money is a priority for most business owners.
Yet that’s not the only reason you should consider doing it for your business.
Here are some of the benefits of outsourcing insurance claims beyond cost efficiency:
Access to Expertise
When you outsource any core business function, you relinquish control over it, which can seem like a risk if you have high standards.
However, on the contrary, it can be one of the best decisions you can make.
Outsourcing insurance claims to a specialist insurance firm that can draw on the years and years of experience of its employees, and apply best practices at every step of the way, can ensure efficient and mistake-free processing.
As you grow your company, outsourcing becomes a very useful tool you can leverage to scale sustainably yet quickly.
As you scale, you can simply adjust the level of outsourced services to suit your current size. That way, you don’t have to hire your way to growth, and risk spending more than you can afford and simultaneously taking employee time away from the most meaningful growth activities.
Focus on Core Competencies
On that last point, one of the best reasons to outsource your insurance claims (and other business functions for that matter) is so you can direct your resources on what matters most to the business.
By freeing up employee time, you can encourage them to focus on core competencies such as:
- Ideating and innovating for new products
- Improving the customer experience
- Brainstorming strategic expansion
There’s only so much time and attention we all have access to during the day, so why not use the 80/20 principle and encourage your employees to focus on the few activities with the highest ROI for your business?
Is Outsourcing Insurance Claims Right for You?
Without proper management or scaling processes, an insurance contact center could quickly devolve into a pandemonium that churns out unhappy customers taking their incensed experiences to Internet review sites. It’s natural for any business to grow too big for its britches, but it’s particularly catastrophic for an insurance claims business to lag behind its duties to its customers.
The perennial task of corporate reinvention is to balance day-to-day operations with methodical strides for improvement; in the case of insurance companies, the focus on the customer experience is one of the primary industry differentiators that simply cannot be neglected.
The solution is to find a reliable and trustworthy BPO solution that helps scale operations like insurance claims. It might seem unnatural or unnerving to outsource a physical tangible call room, but the reality is some outsourced call centers may do the job better while adding a key new ingredient: the ability to scale.
Insurance BPOs provide the skills for “in the trenches” tactical work of handling insurance claims, and they can also bring the expertise that comes with having helped other large organizations scale their businesses.
Having “free” time may feel strange for a manager, but you’ll get the hang of it.
What to Look Out For When Outsourcing Insurance Claims
You may be able to find some turn-key insurance BPO services, but if only it were that easy. We don’t advise any business owner to blindly trust outsourcing key processes of their business.
The proper software stack allows proper integration between your business and your BPO, and it can provide several concrete advantages no BPO can offer by itself.
For example, a remote screen control tool like Insightful helps insurance companies and insurance BPOs gain insight into employee performance while creating a reward system that recognizes consistent top performers. This not only helps keep insurance virtual assistants accountable to their company, whether hired directly or through an insurance BPO services company, but it helps you stay on top of your priorities without the cognitive overload of manually checking each employee.
Leveraging remote screen control allows you to make sure the work is being done correctly and to the agreed-upon timelines.
In an industry such as insurance, the speed of processing and resolution are the core of the customer experience. It’s much easier to snipe out insurance virtual assistant inefficiencies and magnify what’s working well with the proper productivity monitoring tools.
Data Privacy and Security
Insurance claims tend to involve highly sensitive data, so make sure that your BPO has strict compliance measures in place. Medical insurance companies should take additional proactive measures to ensure HIPAA compliance at every step of the way– medical insurance claims software exists for a reason! Ultimately, the liability of protecting your customers’ data is still your responsibility– so do your due diligence.
Insightful, for example, has the option to either store data in the cloud in just a few minutes, or to store data locally on an organization’s private servers. Depending on your data's sensitivity, storing outsourcing claims and BPO processes on your own servers is worth considering.
Outsourcing Insurance Claims
By harnessing the potential of business process outsourcing (BPO), insurance companies can streamline back-office operations and minimize operational expenses while reducing the time it takes to settle claims.
Effective BPO translates directly into the bottom line: lower costs mean higher profits.
Services and processes that were once time-consuming and exhaustive can be streamlined by outsourcing or totally automated using cutting-edge technology. This, in turn, helps insurance companies increase their profits, giving them the option to re-invest further into growth and the customer experience.
When outsourcing anything from customer onboarding to claims processing, you can harness your team’s focus on strengthening your core areas and increasing customer satisfaction.
Ultimately, better and faster ROI claims processing depends on your systems and software stack.