How a BPO Can Help You Manage Your Workflow

Productivity is a challenge for insurance providers. According to McKinsey, most carriers struggle to meet the cost of capital and sustain growth. And while other industries have benefited from advances in digital technology, the insurance industry is full of complexities that make boosting productivity more difficult.

Since the pandemic, insurance claims have increased while capabilities have fallen. As a result of staff shortages, claims are bottlenecked, extending processing times for policyholders and leaving staff members stretched thin.

While productivity and workflow challenges are internal problems, they have a flow-on effect. In today’s highly competitive landscape, customers are expecting more from their providers than ever before. Left unchecked, productivity issues can lead to low customer retention.

Working with a business process outsourcing provider is one solution to the productivity challenge. Business process outsourcing (BPO) involves outsourcing internal processes to an outside provider. This could look like outsourcing your subrogation, auto damage appraisals, property damage claims, or reviewing fixed property damage demands for insurance agencies.

By outsourcing workflows, insurers can reduce bottlenecks and improve customer relations, amongst other key benefits:

Save Money

According to Deloitte, the number one reason companies outsource their processes to a BPO is to save money. Working with a BPO provider is cost-effective for many reasons, including economies of scale, reducing the need to hire more staff, and saving on overheads. Choosing a flexible BPO also helps keep costs down, as you’ll only pay for outsourcing services when needed.

While working with a BPO positively impacts the bottom line, outsourcing also helps retain existing staff. Replacing staff is expensive as it takes time to recruit and train new team members. Employee turnover also leads to lower morale and decreases in productivity.

Working with a BPO helps retain existing staff by reducing their workload and improving employee productivity, performance and wellbeing. Outsourcing may also mean not having to hire specialists, which is more expensive and time-consuming than hiring for generalist roles.

Save Time

While all organizations want to save money, saving time often has more of an impact on the customer. Standard cost-cutting procedures frequently fail to improve productivity as these measures don’t impact workflow. The real problem is your team has too much to do and too little time.

When negotiations drag on, staff have less time to devote to other claims. Even ones that are easily solved. Hiring more staff can compound the problem as recruitment, training, and onboarding use time and additional resources.

A BPO provider frees internal staff from tasks that can be performed faster by someone with a specialized skill set. Staff can complete day-to-day claims faster and with fewer errors.

Outsourcing can also lead to a higher quality of work since your existing team members are no longer splitting their time between multiple responsibilities.

Gain a Competitive Edge

Even before the pandemic, the insurance business environment has changed. Customers are more willing to shop around for a carrier that works with their demands. They’re also not averse to switching carriers if the customer service does not meet their expectations.

Today, customers expect to be able to reach an insurance representative at any time, through almost any channel. They also expect friendly, helpful, and personalized service at every touchpoint. Providing exceptional customer service is difficult when your staff are stretched so thin.

Working with a BPO means having trained specialists working on negotiations or processes that can hold up your internal staff. If you deal with auto claims, you’ll know that parts and rental car shortages add extra stress to the claims process and require more communication with policyholders than usual. Likewise, the subrogation process can be drawn out and requires specialist staff to ensure accurate and timely results.

BPO providers aren’t just there to take on additional work. An effective provider will look for ways to innovate, reduce turnarounds and improve productivity which all help to improve wait times and communication for the customer. All of these practices help you deliver a competitive edge.

Scale Up

Dealing with inconsistent workflows is one of the biggest challenges for insurance carriers right now. As workflows ebb and flow, the capacity of your staff stays the same. Partnering with a BPO allows for scaling with minimal effort, resources or additional requirements from your internal team.

As a BPO uses specialist staff, there’s no onboarding or lag time between partnering with a new provider and being able to hand off work. Not only can a BPO take work off your shoulders, but they can also work with you to achieve your business goals. If your goal is to expand, a BPO can work to smooth inconsistencies in your workflow as you take on more staff or expand your capabilities.

Alternatively, a BPO can help you overcome periods of busyness and scale back your operations. At the same time, your organization avoids the disruption of having to hire or fire staff during these periods. This also means staff aren’t worried about what a downturn means for the future of their role.

Choosing the Right BPO Partner to Manage Your Workflows

Choosing the right BPO partner to manage your workflows can increase profits, productivity, and policyholder retention. The focus for insurers looking for a BPO should be on saving time and money with no reduction in the quality of service. For outsourcing to be successful, you need a provider that combines industry experience with a focus on innovation and specialist skills.

At Comsearch, we bring a wealth of knowledge and technical experience to the business of property and auto claim services. Our commitment to extensive training combined with cutting-edge technology allows us to deal with specialist claims quickly and accurately.