February 28, 2019
6 Questions to ask insurance agency outsourcing providers
Insurance outsourcing delivers an innovative and systematic business model that suits businesses which require longer life cycles such as insurance. From workforce to operations, outsourcing it to an experienced service provider streamlines the processes that guarantee your customers’ satisfaction and lessen your risks, therefore helping you grow and stay in the market for a long time.
Insurance outsourcing services
Insurance outsourcing offers a variety of services, which relieve you of administrative tasks, policies and claims processing, insurance lead generation, and insurance business process outsourcing.
There are insurance outsourcing companies that focus on admin or back office operations, which is usually the most availed service among the other business models.
To maximize the benefits of outsourcing to your insurance business, you should hire a provider that adds value. Eliminate the risks by asking the right questions first before hiring one.
1.How can you help me expand my business?
The primary objective why you are considering a provider for their insurance outsourcing services is you want to focus on your business’s core. And should you see that the timing is right to expand, the accompanying costs and adjustments might overwhelm you.
Insurance agencies can outsource their administrative departments. Back office activities are as important as core ones; and it is essential that your team knows how to properly handle the interconnected processes. Being efficient in this aspect will reflect in the way customers and their needs are handled. Marketing using your high client satisfaction rating is a surefire way to expand your business market and in turn, grow your revenue.
With an outsourced solution, insurance companies can now brave the waters when it comes to expansion. Flexibility and scalability are some of the high-value success points of outsourcing. You pay an all-in monthly fee that covers all the activities needed to run a particular aspect of your business at the moment you need it, and within your means. The best part is that the solution grows with your business so you don’t pass every opportunity to succeed.
These, and more, are part of the commitment of an outsource insurance agency.
2.What are the costs involved in your insurance outsourcing services?
Cost-wise, it is true that outsourcing involves a big upfront investment (for a hosted solution) or a monthly all-in service fee which sometimes discourage company owners who are new in the business.
However, know that the expense can be broken down to cover the different aspects or activities involved in your business solution like management fees, staff salary, service fees, and fees on software subscriptions or equipment usage. And it is safe to say that despite the cost, you actually save on some aspects that you can only omit when you choose to outsource.
Examples of your cost savings that comes with outsourcing includes:
- Operation expenses – rent of office space, electricity, supplies
- Government-mandated employee benefits
- Holidays and paid leaves
- Employee retention activities and performance incentives
The all-in monthly fees you pay your service provider covers all that you need to operate your business with ease so you can focus on growth and revenue-generating activities.
3.Do you only get outsource insurance professionals ?
Although you already know that outsourcing companies are focused on hiring the best in their field, it is still your right to know what kind of people will work for you. You must make sure that they hire only outsource insurance professionals.
Delegation is one major benefit of outsourcing and when it comes to insurance, it usually boils down to customer service, collections, policy underwriting, claims, and settlements. Delegating control over these documentation-heavy processes should be clear upfront, and are best handled by skilled insurance professionals.
4.How do you store your policyholders’ data?
Will you be using cloud-based data storage, a hosted database, or an in-house document storage facility? Access and security measures over these sensitive data should be properly stipulated in the contract.
5.What is your insurance Business Process Outsourcing team’s code of ethics?
Because you are outsourcing, it is inevitable to disclose some important and confidential information about your company. A leak of your business information, especially of your clients, is possible. Therefore, you should know how to mitigate this risk by asking your service provider about their regulations on about the leak of information and clients’ privacy.
You may also check their confidentiality, privacy, and security rules to avoid the confidentiality issues risks.
Also, customer handling is critical with insurance companies. Since you are dealing with long term investors, customers should be consistently provided with expert support. Outsource insurance professionals should be knowledgeable in your policy underwritings in order to answer customer concerns with credibility and assurance. It is also equally important that they exercise empathy and professional ethics when dealing with your policy holders.
6.What is the rate of success of your insurance lead generation program?
Insurance lead generation is an optional yet valuable service that can significantly benefit your company to generate more sales and revenue. There are a number of service providers that specialize in this field, which usually utilize local-based strategies in order to gain high-quality leads.
Deciding to hire an insurance agency outsourcing provider involves thorough research. Determining the services you need, the level of control you want, and the right people to work with long-term in mind should drive your decisions. Although outsourcing may be one of the best cost-effective solutions for getting jobs done, you should be aware of the risks that come along with it and know how to mitigate them.