Business process outsourcing has become increasingly more popular throughout the past decade. In fact, more than 250 leading insurance organizations now rely on BPO services to help the, achieve profitable growth. As the statistics show, BPO is more than just a growing trend – it’s a highly leveraged strategy for the modern insurance organization.
That’s because more than 70 percent of professionals in the insurance industry have seen their workload expand over the past three years. Due in part to a changing market, increased competition, growing carrier requirements and more, insurance organization employees are now facing heavier workloads than ever before.
Additionally, companies are often failing to manage this increasing workload. Less than 30 percent of professionals in the insurance industry, for example, saw a reduction in their workload after implementing a new technology that promised to provide increased productivity. Those who hesitantly committed to BPO – by only outsourcing certain low-level tasks, for example – saw similar lacking results. As a result of this, the vast majority of insurance organizations still spend between 20 and 30 percent of their revenue on contextual processing work, giving them no value-adding activity in return for that investment.
BPO services can help to reverse that trend. “Level 1“ outsourcing services – which focus on offering support for specific tasks – can offer up to 60 percent in savings per task. “Level 2“ outsourcing services, which handle complete functions and processes, can increase in-office productivity by up to 20 percent, and can improve margins by up to 40 percent. Finally, there’s “Level 3“outsourcing, which can offer operational transformation. Such an outsourcing service will identify and address wasteful activity, inefficient processes and underutilized staff across an entire office – potentially boosting productivity by more than 25 percent, and profit margins by more than 50 percent.