6 Tasks insurance companies should outsource

6 Tasks insurance companies should outsource

In today’s extremely competitive business environment, US companies must constantly find ways to “cut the fat” so they can focus on core operations that drive growth and profitability. For insurers like you, that core activity is selling policies. Therefore, you may want to consider outsourcing non-core tasks such as:

1. Data entry and forms processing

Insurance companies handle huge amounts of data and manage many types of forms: application forms, medical forms, claims forms, and payroll forms, among many others. Processing all of these data and forms in-house can be time-consuming, especially when done manually. While you could use computers and document processing software, that option would entail large investments and ongoing maintenance and management expenses. You’ll also need technical expertise and support.

A cost-effective solution is to partner with a third-party provider that can efficiently and accurately perform data entry and forms processing for you. Outsourcing these operations will not only translate to time and cost savings, but it’ll also free you from the headache of managing the required IT infrastructure.

2. Underwriting

Every insurance application goes through the underwriting process where underwriters verify all the details provided in the application and conduct background checks. They evaluate insurance proposals, factoring in different variables, such as the applicant’s credit ratings and claims history, to determine the amount of risk involved and ultimately determine the right premium for every policy.

The underwriting process is extremely crucial because it enables insurance companies to manage their risk while still offering competitive rates. However, it can take anywhere between three to eight weeks. Fortunately, there are many companies that offer services related to underwriting such as:

  • Application verification and quality check
  • Application processing and coordination
  • Advanced analytics
  • Application rating

3. Commissions management

Insurance agents earn a commission for every policy they sell. The commission rate typically varies depending on the type of policy. Given the lack of uniformity in the commission rate and the large number of insurance agents, managing commissions can be difficult. This is why insurance companies are better off outsourcing this task to a third-party provider. The provider already has trained personnel and the necessary infrastructure to accurately compute each agent’s commission and quickly process its disbursement.

4. Customer support

Insurance companies can hire call center agencies to handle customer support 24/7 on different channels, including voice, email, chat, and social media platforms. Customer service representatives (CSRs) can answer customer queries on matters such as:

  • Pending applications
  • Requests for policy statement
  • Insurance endorsements
  • Pending claims

CSRs can also be assigned to reach out to customers. For example, during the sales process, they can explain to the applicant what the insurance policy will cover. And when a policyholder files a claim, the CSR can provide them with updates until the claim has been approved.

5. Claims management

Managing claims can be a very tedious process because many insurance policies are decades old and all their related records have to be verified before a claim settlement can be made. However, back-office outsourcing companies have systems in place to fast-track claims processing. Once they’ve been informed that a claim has been filed, they carefully study the inclusions and exclusions of the policy and examine the claimant’s eligibility to determine whether to approve or deny the claim.

Related reading: Why record retrieval services are ideal for insurance companies

6. Record retrieval

Insurance companies rely heavily on paperwork. Life insurers, for example, use medical records to evaluate an applicant’s risk. Auto insurers use accident and police reports to evaluate what really happened in a car crash and if their client is eligible for damage claims.

Unfortunately, obtaining documents is a time-consuming process that requires coordinating with various recordkeepers and following up with them multiple times. It’s also very complex since each custodian has their own set of rules and guidelines, forms, and processes.

You can save yourself a lot of time and trouble by partnering with a third-party provider such as Record Retrieval Solutions (RRS). With RRS, you can conveniently place an order using our online portal. You can also use the same online portal to track the status of your order 24/7 and easily download your requested records. You’ll receive your paperwork within 12 days on average.

Interested in our services? Get in touch with us today.