BPO Concept becoming Popular in Insurance Industry

Business Process Outsourcing is developing its roots in insurance industry. It is expected that in 2015 the global insurance sector is going to spend about $3.5bn in outsourcing insurance operations. The reason behind this transition is the need of better skill set, technology and customer care. 

The latest research conducted by Everest Group shows that the amount of $2bn spent in 2011 will increase up to $3.5 to $3.6 in 2015. Furthermore Life and Insurance segment is going to spend about 60% of their total expenditure on business process outsourcing. Everest Group mentioned:

“Insurers need help to understand the requirements and priorities of digital consumers and are looking to BPO service providers to help them navigate through this channel”

How Outsourcing is Beneficial for Insurance industry

The challenging business climate has compelled insurance industry to adopt new means of doing business. Some major benefits include:

• Outsourcing helps insurance companies to focus on core activities that can increase their revenue. By outsourcing noncore activities insurance companies can focus on new projects and new insurance packages to clients.
• Hiring outsourced team of experts helps insurance companies better manage claims, frauds and other functions.
• Customer services become more efficient and effective by hiring services of professional BPO Company. Companies can add more customer care professionals for the same cost, improving the ration of customer care agents to customers. Good customer care will naturally build up customer’s trust eventually improve the brand and getting a larger share of the customer’s business.
• The overall capex for implementing latest technology and integrated system decreases as the outsourcing companies systems are used to achieve business results. Moreover companies have to pay less for expert staff as compared to hiring them in-house.

In summary then, outsourcing insurance services is a proven and reliable strategy for enhancing business revenue and developing an excellent customer experience.