3 Benefits of Outsourcing Insurance Claims Processing
Processing insurance claims quickly and efficiently is the top concern for insurance policyholders. If you’re able to gather information quickly, provide as much transparency as possible, and deliver a speedy resolution, you’ll reduce your operating costs and improve your brand reputation.
Working with an insurance outsourcing partner for claims processing can help your business meet and exceed customer expectations while saving time and money internally. Wondering exactly how a BPO partner can help with this important facet of your insurance business? We’ve gathered the top three benefits of outsourcing your insurance claims processing.
1. Reduce Claims Processing Costs
Processing costs and claims payments represent as much as 80% of the average insurance policy. Shortening the time it takes to settle a claim helps reduce administrative costs and improve profitability for the insurance carrier. When you consider that the average claim supervisor spends roughly 55% of their time on non-core work activities such as administrative functions and waiting on paperwork, it’s only logical that reducing this time will result in cost savings. BPOs can centralize all the information related to a claim in a secure, cloud-based system and work directly with your internal team and with policyholders to resolve claims quickly and reduce processing time.
2. Take Advantage of InsurTech for Claims Processing
Often, BPOs have access to more advanced technology for claims processing than carriers. By partnering with an insurance BPO with a digital mindset, you can move claims processing to a more nimble, technologically-driven environment. Customers have come to expect digital claims functions as a standard policy service option. Research shows that digital claims functionality can drive a 25–30% reduction in claim expenses and as much as a 20% increase in customer satisfaction scores.
Not only will you and your policyholders gain access to new technologies, but working with a BPO can save your business money on buying, maintaining, and upgrading software and digital tools internally.
3. Improved Customer Experience
Claims processing is the most important moment in an insurance lifecycle. Claims happen because of events that are already stressful for policyholders—a car accident leading to a claim on their auto policy, a natural disaster causing a claim on their homeowners’ policy, or a major medical event causing a claim on their health insurance. If you want to retain their business come renewal time, the last thing your business should do is add extra stress to their plate.
Insurance BPOs have a high customer service standard for insurance claims processing and customer experience. You can work directly with your insurance outsourcing partner to develop a completely tailored approach to customer service based on your brand and company standards.
Which BPO Claim Processing Services are Available?
From P&C insurance to employee benefits, a good BPO partner will be able to provide a full range of administrative and insurance claims processing services tailored to your specific business needs. This may include:
- Premium loss summaries
- Claim input and tracking
- Claim acknowledgment letters
- Unit stat reports
The right insurance outsourcing partner can help your business with claims processing, customer experience, insurance technology, and more. Reach out to Patra to start developing a custom solution for your insurance business.