Insurance & Brokerage - White Papers

WHY OUTSOURCE (BPO BENEFITS)

Although BPO is not a recent phenomenon, today's renewed vigor and interest in BPO has arisen from one need - the need to become more competitive and the compulsion to provide 'more value' to the customer than the competition. In 2003, insurance companies will continue to adopt more relevant business models. Fierce competition, rapidly evolving technology, deregulation and the resultant spawning of more innovative insurance products, terrorism, and a volatile economic landscape all demand business solutions that surpass the capabilities of in-house staff. Insurance companies that are willing to take stock of their inadequacies, assess their needs, and consult with outsourcing experts to ensure partnering with the right provider will survive and prosper in the years to come.

There are several factors that are proving to be the driving force behind the new thrust on BPO in the Insurance sector. Some of them are:

1. Cost Savings -An offshore BPO solution can result in tremendous savings - even up to 24%-30%- in back office operations such as items processing.
   " Superior Policyholder Customer Service
   " Increased Efficiencies
   " Faster Speed to Market
   " Continuous Process Improvement
   
   
2. Improving present service levels by leveraging the competencies of process experts and also by introducing globally emulated best practices - leading to process optimization and efficiency (e.g., improving the total time spent in processing an auto claim by outsourcing it to an outsourcer established in the Auto Claims Processing Area).
   
   
3. Exploration of customer self-service through channels like web-portals.
   
   
4. Focusing on core business.
   
   
5. Flexibility of transaction capacity, people, technology.
   
   
6. Risk Mitigation in retention and training, technology risk, market share risk