Insurance executives at major carriers and MGAs today face several difficult challenges, all of which can be easily solved by outsourcing business processes to a trusted BPO provider. Here are five examples.
1. Staffing becomes a “revolving door”.
Ambitious entry-level employees hoping to rise to higher positions in operations or underwriting are drowning in the repetitive manual work associated with back office administrative tasks like setting up submissions, issuing policies, and pulling loss runs. As a result, employee turnover is high while retention is low.
After getting trained by the company and working in data entry for a few months, your new solid performer wants promotions. If they aren't promoted, they leave the company entirely all too often. By removing the burden of menial work, you can keep more employees on board.
2. Hiring and operational costs are rising.
Salaries for administrative jobs keep rising. Meanwhile, it’s estimated that the cost to replace an administrative employee earning between $30,000 to $40,000 is $8,000, or 20 percent of their annual salary. So retaining capable employees benefits you financially. But you need to keep them happy and motivated to retain them.
Other cost efficiencies can follow because BPO also boosts staff morale and productivity. By outsourcing repetitive data entry tasks, your employees can focus on more strategic underwriting or customer service-oriented activities.
"They are fast, simple, and cost-effective. Their team is an extremely reasonable group of people who care, really care, about your success. Every launch has some bumps - they worked above and beyond to make sure those bumps didn't disrupt our launch or our ability to write new business. Without Solartis, I wouldn't be projecting a 30% increase in top line growth."
said Cameron Linder, CEO, Western Bowling Proprietors Insurance (WBPI), Rednil Insurance Brokers, Inc.
3. Lagging turnaround times grow the backlog and harm your customer relationships.
With existing employees overwhelmed by monotonous and draining work, and many of them exiting through the revolving door, companies tend to suffer backlog and fall behind in issuing policies. The timeliness and quality of your policies impacts how the industry perceives you and your service levels.
BPO can provide consistent quality and turnaround for production so you can provide your customers with grade A service. With centralization in place, an outsourced BPO solution like Solartis Customer Delivery is able to deliver policies within 24 hours at 100 percent accuracy.
4. Competition is becoming more fierce within the P&C insurance industry.
Other companies in the industry, facing similar challenges, are turning fast to BPO outsourcing. While some skeptics remain, research by Celent documents that insurers’ attitudes toward BPO viability have shifted in a positive direction in recent years.
5. Operational leadership lacks reporting transparency and valuable insights.
How many policies did we issue this week or month? Were the turnaround times (TAT) met? What was the error rate? How can we improve? Solartis Customer Delivery will let you know the answers and help you work on achieving better performance day after day.
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