How to Make Insurance Outsourcing Work for Your Business
Whether you're an insurance agency or a business who processes insurance claims in-house, you can benefit from insurance outsourcing.
Outsourcing continues to grow in popularity across every industry, and insurance is no different. More niche vendors are springing up to offer specific valuable services to business in need. By relying on insurance management services you'll be able to cut costs while making your organization more efficient.
Learn what insurance outsourcing is, the types of outsourcing available, and how insurance outsourcing can be advantageous for your business.
What is Insurance Outsourcing?
Insurance outsourcing is the process of outsourcing certain tasks to a third-party vendor. This can be done if you're a business that's processing insurance claims in-house, or if you're an insurance agency looking to streamline certain back-office activities.
There are a lot of repetitive and routine tasks that you can outsource to cut costs and streamline your operations. By freeing up the time of your existing staff you can enable them to focus on more strategic and beneficial tasks.
The goal of outsourcing is to enable your company to grow and thrive. With a high-quality vendor behind your business, you can reduce overall company costs and deploy your funds more effectively.
The most common types of insurance outsourcing tasks include:
- Insurance policy management
- Processing insurance claims
- Managing commissions
- Processing loss runs
- Policy issuing, checking, and endorsement
Effective insurance outsourcing starts with choosing the right vendor. A third-party outsourcing team with a solid track record can help to improve your company over the long-term.
Types of Insurance Outsourcing
Depending on the structure of your business and the types of claims you process, you'll have different outsourcing needs. Below are the most common types of insurance outsourcing commonly employed:
Traditional Outsourcing Model
With this outsourcing model, you outsource on a task basis. The outsourcing firm will then complete said tasks. Usually, this is employed in order to save money and take advantage of wage arbitrage by using outsourcing firms based overseas. You'll also free up your existing employees to focus on more valuable tasks.
This type of outsourcing is used to help resolve insurance processing issues. For example, if you have a bottleneck of claims that need to be processed then you can bring in an outsourced firm on an as-needed basis to help resolve this.
By utilizing outsourcing to help resolve certain issues you can ensure that your current employees aren't overloaded and that business continues as usual.
This type of outsourcing is used to gain a higher level perspective on operational processes, so you can improve and streamline your existing workflows. You might see an up-front cost with this type of outsourcing, but as inefficiencies are taken care of, you'll see enhanced returns and productivity over the long term.
Advantages to Insurance Outsourcing
Insurance outsourcing done the right way can greatly benefit your business. Working with a quality insurance outsourcing provider can bring you benefits like the ones below:
1. Reduce Operational Costs
With insurance outsourcing, you can reduce your overall costs of in-house staff. By outsourcing daily tasks mundane tasks you can either reduce the size of your department or have your existing employees focus on more value-added tasks.
2. Shift Staff to Higher Value Activities
By outsourcing effectively you can shift your primary business focus to what it does best. In today's competitive business landscape your business needs to excel in its core areas. By dedicating all of your staff resourced to the activities that matter you can move your business in a positive direction.
3. Rely on Third-Party Expertise
In some cases, you might want to rely on the niche expertise of a third-party insurance vendor. You might not have the capabilities in-house, so instead of bringing on a full-time team member, you can rely on the services of a third party company. This will help you cut costs while still being able to offer a high level of service.
Keep in mind that even though you're outsourcing mostly non-essential services, you'll want to stay on top of communication with your vendor. Most companies will rely upon a cloud communication solution to streamline communication and offer a centralized dashboard for all ongoing communication.
Whether you're an insurance agency looking to outsource certain tasks or a business that deals with insurance claims, outsourcing is something worth considering. By outsourcing insurance processing tasks you'll be able to free up staff time, cut costs, and streamline your existing operations.
Your business has enough on its plate. Outsource what makes sense for your business, choose a world-class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.