Recently, insurers have been plagued by staffing challenges, leaving them with a limited internal headcount that makes it difficult to run operations smoothly and efficiently. In the United States alone, the insurance industry is projected to lose around 400,000 workers from attrition by 2026—hardly an ideal scenario for insurers who are simultaneously being pushed to meet growing policyholder demands and continue investing in digitization efforts.
While some insurers are turning to traditional temp agencies to remedy the talent shortage, these workers don’t always have the necessary skills and expertise. That’s why insurance business process outsourcing (BPO) services offer a more reliable solution for insurers seeking temp workers to fill job vacancies. The insurance BPO industry is made up of dedicated experts who have specialized knowledge of insurance matters and can seamlessly integrate into your operations whenever you need them to prevent operational disruptions.
The key difference between insurance BPO providers and traditional temp agencies is that the workforce is the backbone of the BPO business model. BPO providers have a skilled workforce that can deliver high-quality customer services to ensure policyholder satisfaction. Plus, these knowledgeable workers also help insurers meet compliance requirements, leverage advanced technology, and use data security and privacy best practices to safeguard policyholder data at all times.
It’s this skilled workforce that establishes BPO providers as a trusted partner for insurers, even in such a dynamic and highly regulated industry. Insurers who need extra people support can create strategic relationships with BPO providers to access a network of qualified and experienced professionals. Continue reading below as we explore how BPO providers are redefining insurance temp work and how insurers can benefit from partnering with them.
Learn more about Covenir’s ONSHORE Insurance BPO services.
Understanding Insurance Temps
Insurance temps, or temporary workers, are professionals hired on a short-term basis. They’re typically brought on by an insurer to fill a specific vacancy or work on fixed-term project when their internal team doesn’t have the capacity to take it on.
The tasks that insurance temps handle can vary widely, depending on insurer’s needs and the individual worker’s particular skills. But in general, they help with tasks including customer support, underwriting support, claims support, and more.
The employment of insurance temps is temporary by nature—intended to fill gaps and expand an insurer’s headcount when hiring more full-time employees is neither justifiable nor feasible. Temps help insurers handle the workload peaks that result from seasonal variations, regulatory changes, or specific project demands. This means that operations can continue to run smoothly without permanent staff members becoming overworked.
7 Strategic Advantages of Using BPO for Insurance Temps
Sometimes, insurance temps are needed for tasks requiring skills or expertise that in-house staff don’t have. This is where BPO providers shine, as they have already have specialized expertise gained from their hands-on experience in the industry. So, if an insurer has a temporary shortage of skilled staff or needs expertise in a particular area, insurance BPO providers can fill those knowledge gaps without requiring a long-term commitment.
Here are some of the biggest benefits of hiring insurance temps through a BPO partnership:
1. Flexibility and Scalability
One of the biggest benefits to insurers of working with an insurance BPO provider is the flexibility and scalability this relationship provides. Temporary support from an insurance BPO partner allows insurers to adapt to changing business conditions and fluctuating workloads, scaling support staff up or down as needed to meet demand.
Recruiting, hiring, and training full-time staff is a time-consuming process, and it certainly doesn’t happen overnight. When an insurer needs to meet seasonal demand and respond to fluctuations quickly, working with a BPO partner is the way to go: their people typically require less training and support than new hires and can hit the ground running. Plus, once peak demand has passed, insurers can easily scale down labor in lockstep, avoiding the long-term commitment of permanent hires.
2. Focus on Core Competencies
When insurers outsource their temporary staffing needs to a specialized BPO provider, their internal team can focus on what they do best—whether that’s underwriting, risk management, policyholder support, claims management, or other insurance workflows.
For instance, maybe an insurer’s team excels at underwriting and risk management, but they don’t have the capacity, skills, or expertise to deliver top-tier customer support. Without outsourced support, the team could end up being stretched too thin, compromising their underwriting service as well as failing to deliver quality service to policyholders.
Instead of overworking their in-house team and having them handle more tasks than they have the capacity for, insurers can free up valuable time and resources by having the BPO provider support their needs. In turn, these in-house resources can be redirected toward the strategic initiatives and core competencies that drive business growth.
3. Market Expansion Support
If an insurer has their sights set on market expansion, partnering with a BPO provider could be a strategic move that provides them with the temporary support and expertise they need to be successful. Since insurance BPO providers employ industry professionals with years of hands-on experience, they can be a great resource for insurers who are trying to enter a new region, target specific policyholder segments, or diversify their product offerings.
In this case, the insurer’s in-house team can manage existing business and operations, while insurance temps through the BPO service facilitate domestic market expansion efforts. Given their experience, the BPO provider can also offer critical insights into local market dynamics and the regulatory requirements of entering a new jurisdiction.
As a result, the insurer can maintain business continuity, with their in-house team focusing on supporting existing policyholders while the BPO partner helps them seize new market opportunities. The insurer then has the ease and flexibility to end the engagement once the market expansion is complete and BPO support is no longer needed.
4. Improved Service Quality
Another strategic benefit of temporary insurance staffing through a BPO provider is that they are already equipped with dedicated teams, proven processes, and advanced technologies specifically designed to deliver consistent and high-quality services. Outsourcing to BPO providers allows insurers to tap into specialized talent pools and leverage the latest technologies for better efficiency, accuracy, and compliance.
So, when an insurer requires support in an area where they don’t have in-house expertise, working with a BPO provider can help them improve their service quality without having to upskill their current employees or expand their internal headcount. In turn, this can support better policyholder satisfaction and increased competitiveness in the market.
5. Cost Efficiency and Resource Optimization
Accessing temporary staffing assistance can also be a cost-effective solution for managing short-term needs, even when hiring onshore talent. This is often a primary reason why insurers turn to outsourced solutions. Making permanent hires comes with many financial commitments, including benefits, payroll taxes, training costs, salary, technology investments, and more. Hiring temporary workers allows insurers to avoid these costs.
Bringing on insurance temps through an outsourced provider turns an insurer’s fixed labor costs into variable costs, as they pay for temporary staff only when they are needed. In turn, insurers can maximize their operational efficiency, freeing up valuable resources that can be deployed elsewhere. Insurance temps who have specialized expertise in a particular workflow may also work more accurately and efficiently than an insurer’s in-house team, providing even further cost savings.
Aside from direct labor costs, insurers can also save on technology and infrastructure when hiring temporary staff through a BPO partner. Many of these providers have established a specific area of expertise within the insurance world, which means they have access to the latest technology. Their insurance clients can then benefit from economies of scale. Insurers are able to use this advanced technology, but because it’s split between multiple clients, they don’t have to bear the large upfront cost or any ongoing maintenance expenses.
6. Risk Mitigation Through Temporary Staffing
Insurance temps can play a meaningful role in risk management within the insurance space. Aside from handling day-to-day tasks that directly support an insurer’s operations, these professionals also help mitigate some of the risks associated with workforce management and the challenges of the modern insurance industry.
Since insurance temps offer greater staffing flexibility, insurers can adjust staffing levels based on fluctuating workloads or unexpected events. As such, they can avoid the risk of being understaffed during peak periods and unable to meet policyholder demands, or finding themselves overstaffed during slower times and facing higher fixed labor costs as a result. BPO providers also help reduce the risk of business disruption from sudden employee departures or extended absences, supporting business continuity with a pool of insurance temps at the ready to handle critical tasks as needed.
Further, since insurance temps from a BPO provider bring specialized skills and expertise to the table, insurers can strategically hire for their specific knowledge. This reduces the risk of errors or delays that may arise from less experienced staff handling complex tasks or projects.
Lastly, bringing on insurance temps can support better retention and satisfaction of the insurer’s full-time staff. In-house employees feel less overwhelmed when temp workers provide relief during busy periods. This reduces the risk of employee burnout and turnover, both of which can threaten the insurer’s operational efficiency in both the short and long term.
7. Future Trends and Opportunities
The rising demand for insurance temps and flexible staffing solutions isn’t likely to go away anytime soon. In fact, the global market for insurance BPO is growing at a steady pace. By some estimates, the market is expected to grow at a CAGR of 8.8%, reaching a value greater than $9.8 billion by 2028.
As the industry continues to grow, both insurers and BPO providers will find unique opportunities in an evolving market. For one, any insurer knows that regulatory changes are a constant in the industry. With the help of temporary staffing solutions, they can quickly adapt to meet new regulatory standards. For BPO providers, this opens up an incredible opportunity to offer staffing support from professionals who have a deep understanding of the evolving compliance requirements and have the ability to guide insurers through regulatory shifts.
The push for continued digitization is also ongoing. To keep pace with this, insurers may seek temporary staff with expertise and familiarity with advanced technologies to supplement their internal teams. Plus, as flexible work models continue to gain popularity across the industry, BPO providers are well placed to meet the industry’s growing need for more efficient and cost-effective workforce management.
Learn more about Covenir’s ONSHORE Insurance BPO services.
The Process Of Finding Insurance Temps With BPO Services
Working with a BPO provider is much more streamlined and efficient than hiring for your in-house team or using a traditional temp agency. However, there are a few key steps you’ll need to take to find the right insurance temps to suit your unique needs.
Here is what the general process looks like to hire insurance temps through a BPO provider:
- Identify your staffing needs: First, recognize the specific roles you need to fill, and the required skill sets you’re looking for in your insurance temps
- Find a reputable BPO partner: Do some research on your own or get recommendations from industry peers to find a BPO provider that specializes in the insurance processes you’re looking for; assess their reputation, customer reviews, and qualifications to ensure they’re the right fit
- Onboard the BPO provider: Insurance BPO providers already employ dedicated industry professionals with the proper skills and training, so they can seamlessly integrate into your operations where needed with minimal hands-on onboarding required
- Monitor ongoing performance: As your engagement continues, you can monitor their performance to ensure they’re meeting your expectations and can make adjustments or provide further support as needed
Conclusion
Accessing temporary insurance workers by partnering with an insurance business process outsourcing provider offers insurers many more advantages than working with a traditional temp agency. BPO providers offer access to incredible expertise and specialized talent, so insurers can have peace of mind that all outsourced tasks are being handled with a high degree of quality and accuracy.
Covenir BPO is a seasoned and reliable provider, offering dedicated expertise, scalable resources, and established processes that insurers need to fill in talent gaps as needed. With flexibility, knowledge, and years of experience, our team can seamlessly integrate into your operations to provide your policyholders with the high-quality service they expect from you. We can help with processes including:
- FNOL/claims
- Underwriting support
- Customer service
- Product sales advisors
- Premium services
- Virtual mail room
When your team needs more people power, we’re here to help. We tailor our services to fit your unique needs, whether that’s on a day-to-day or ongoing basis. Contact Covenir today for more information about our custom staffing solutions.
Learn more about Covenir’s ONSHORE Insurance BPO services.
FAQs
How Do BPO Services Handle the Onboarding Process?
Onboarding a BPO provider is generally a seamless experience. The BPO partner will typically coordinate with the insurer to determine their specific needs and requirements. From there, they’ll deploy a team that has the background and skillset required to fit these needs. Because the essential expertise is already in place, there is generally very little hands-on training that the insurer needs to provide.
What Is the Typical Time Frame For Finding Insurance Temps?
The exact timeline can vary depending on how you plan on hiring your insurance temps. For instance, if you’re working with a temp agency, it may take a few weeks for them to find and train the right people for your needs. If you decide to work with a BPO provider instead, it may take you some time and research to find the right partner. However, once you are ready to begin your engagement, they will already have teams on deck to handle your business needs with minimal further training or onboarding required.
What Qualifications Should Insurance Temps Have?
The specific qualifications an insurance temp should have depends on the types of processes you need them to handle and where you’re located. Depending on local requirements, they may need to have specific licenses or certifications. In general, you’ll want temp workers to have a background in insurance and a knowledge of industry regulations. It’s also desirable for them to have clear communication skills and proficiency in the software programs you use.
How do BPO services ensure the quality of insurance temps?
This will depend on the BPO provider you’re working with, so it’s a good idea to ask about this when you’re researching potential partners. However, in most cases, they’ll employ a rigorous screening process to make sure they only hire talent that has the relevant industry experience and skills. They should also run regular training programs and monitor performance on an ongoing basis to ensure they’re meeting a certain quality of service.
Can BPO services provide temps for remote insurance roles?
Yes, BPO service providers can typically provide their services for remote insurance roles. For a more precise answer, inquire directly with your chosen BPO partner.