Mail and print distribution likely aren’t an insurer’s strong suit. Yet timely and accurate correspondence is a crucial aspect of insurance operations. Since it’s not a core competency for insurers, managing the costs, technology, and systems involved with this process can be overwhelming and divert focus from mission-critical tasks. As a result, insurers of all sizes often struggle to streamline print and mail without compromising service quality.
In this article, we’ll explore the important role of mail services on insurance operations and profitability. We’ll also walk through how insurers can optimize this workflow for enhanced efficiency, financial performance, and compliance.
The Role of Mail Services in Insurance
Insurers regularly send correspondence both for compliance purposes and to support the policyholder experience. Depending on the state, some documents, such as renewal or cancellation notices, billing statements, and policy declarations, are required by law. Other materials like newsletters, promotional offers, and educational pamphlets are optional, though frequently sent by insurers to engage and strengthen relationships with policyholders.
Mail is therefore an essential communication channel between insurers and policyholders, especially for those who opt out of digital delivery. It’s how consumers can be notified that their policy is about to expire, their claim has been accepted or denied, or receive documentation explaining coverage details on their new policy.
Because insurance correspondence regularly contains confidential information, it’s subject to strict regulatory guidelines to maintain policyholder privacy. Even in the digital age, mail service is still one of the most secure ways for insurers to reach policyholders, playing a vital role in the industry.
Cost Considerations in Insurance Mail Services
Mail services don’t directly generate revenue for insurers, even if they’re essential for insurance operations. They’re a distinct cost center that can impact an insurer’s profitability, especially given the large volume of correspondence they must send out on a weekly basis.
Some of the typical costs insurers will incur for mail services include:
- Printing
- Postage
- Handling
- Logistics
There may be additional hidden costs depending on the efficiency of the mail service, such as when reprints are required when there’s an error in the original version of a document. Plus, any delays or bottlenecks in printing could force insurers into using express shipping to ensure the correspondence arrives on time, incurring higher handling and logistics costs.
3 Ways to Maintain Quality Without Overspending
Reliable mail services support compliant, smooth-running insurance operations. However, in today’s competitive environment, insurers must find ways to control spending on the print and mail function without compromising quality. The following suggestions can help steer insurers in the right direction:
1. Enact Quality Control Measures
Printing errors can lead to unnecessarily high costs as insurers must reprint the document to ensure compliance and support policyholder satisfaction. One strategy to curb mistakes is to implement quality control checks like proofreading before documents are printed and batch sampling before they’re sent off.
While seemingly simple, these practices can catch errors or inconsistencies early on before the entire run is complete. In turn, insurers can avoid more costly mistakes that require greater volumes of re-prints and set back the next batch.
2. Leverage Automation
Automation supports much more scalable and cost-effective mailing processes than manually completing these functions. Through digital integration with automated print technology, insurers can produce personalized correspondence and print and send documents in bulk much more quickly. They can also apply a barcode and reference file to each piece of mail to electronically document its processing requirements and ensure it’s sent on time.
In addition to better processing efficiency, automated solutions also help insurers reduce the frequency of printing errors, leading to fewer reprints and lower total costs.
3. Outsource the Process to Expert Providers
As mentioned above, efficient print and mail distribution services likely aren’t a core competency for insurers. Though it may seem like managing these functions internally gives the insurer more control over costs, outsourcing is often a better alternative.
An experienced outsourcing partner that specializes in print and mail distribution will have proven systems and dedicated technology in place to deliver a much more streamlined and cost-effective service. Not only does this produce positive financial results for insurers, it also gives their team more time to focus on core profit-driving operations.
Scalable & Compliant Insurance Mail Services from Covenir
Covenir offers flexible, technology-enabled print and mail capabilities to help insurers modernize this traditional communication channel. We are equipped to handle all outbound policy and/or claims print, leveraging automation for optimal speed and accuracy and providing statutory Proof of Mail to adhere to state requirements.
We work alongside your team to ensure policyholder correspondence is customized properly and sent by the proper date to meet compliance. Going one step further, Covenir can fully integrate into your workflows, processing returned mail, updating policyholder records, and sending alerts to employees to begin underwriting or sales activities if desired.
Contact us today to learn more about our custom print distribution services.