CHOOSING THE RIGHT INSURANCE OUTSOURCING PARTNER IS TOUGH
We often hear from our clients that the most difficult part of starting to use an insurance outsourcing service is “starting to use an insurance outsourcing service.” This is especially true for businesses that have never used outsourcing before.
There are many reasons insurance organizations seek out business process outsourcing (BPO) and business process management (BPM) solutions, whether it’s reducing expenses, addressing staffing challenges, supporting growth, improving efficiency, or all the above (and sometimes more). Every one of these goals is important and achieving them could have a tremendous impact on a business’ bottom line.
Yet, the amount of value you end up deriving from outsourcing ultimately depends on choosing the right outsourcing vendor. Let’s talk about what you need to consider so that your team can reap the benefits of BPO/BPM.
DO THEY HAVE INSURANCE EXPERTISE?
It goes without saying that insurance is complex, and there are certain nuances only those with the right industry knowledge will understand. While there are countless outsourcing providers on the market, not all have the insurance expertise necessary to deliver accurate, high-quality results.
No one wants to do rework or make corrections, especially not when the source of the errors or oversights is your outsourcing partner. That’s why it’s critical to choose a BPO partner that’s focused exclusively on the insurance industry and ask them kind of insurance experience, training, and other qualifications their employees possess.
DO THEY EMULATE OR ELEVATE?
Part of the reason insurance organizations struggle to choose an outsourcing partner is because they’re sometimes perceived as similar or identical. After all, what’s the difference between two different BPO providers performing the same task using the same process?
As we mentioned, insurance expertise is a big factor, but so is having the right technology and process improvement skills. Some BPO partners simply do what you tell them, how you tell them, but the best partners have the flexibility to go a step further. What if a BPO partner could not only take those tasks and processes but improve upon them, making them faster and more accurate? In return, you benefit from happier customers and employees, reduced errors and omissions risk, and greater profitability.
DO THEY FIT YOUR CULTURE?
When you choose to work with a BPO partner, they’ll be impacting your business and service levels. Whenever that partner interacts with your clients in any way, your clients should feel as though they’re being supported by a member of your own team. As such, it’s key that you ask any potential outsourcing provider what steps they will take to understand your culture and how you do things. If the answer doesn’t satisfy you, it may be best to take your search elsewhere.
DO YOU HAVE EMPLOYEE BUY-IN?
At the end of the day, gaining employee buy-in is one of the most critical steps to benefitting from an outsourcing relationship. Employees tend to think of outsourcing as something that will reduce their role in the organization rather than what it truly is: a powerful resource that gives them the capacity to focus on higher value work. As a result, they may push back against any change in their usual routine.
Communicate with your team how a BPO partner can remove repetitive and time-consuming tasks from their workflow, enabling them to prioritize activities that are more meaningful and engaging. In addition, ensure that employees understand exactly how their roles will change and how you will support them throughout that change. Better yet, look for a BPO partner who can provide your team with change management tools and resources during the onboarding process.
PICK THE RIGHT PARTNER
Outsourcing your insurance operations for the first time can be daunting, but the right partner will help you ensure a smooth transition, improve your team’s productivity, and ultimately improve your profitability.
ReSource Pro has helped countless brokers, carriers, and MGAs accelerate growth and elevate client and employee experience. We only work in insurance, so you can rest assured that no matter what processes you’d like us to take on, you’ll see the same high-quality results you’d expect from one of your own team members. If you’re concerned about preparing your team to work with an outsourcing partner, we’ll even support you with change management guidance, so you can transition to focusing on higher-value work more quickly and easily.