Any good manager will tell you that you can’t do everything yourself. You need to delegate. The same can be said for insurance companies. If you want to efficiently grow, without a lot of missteps, you might want to delegate some tasks to a quality business process outsourcing (BPO) partner.
But what about underwriting control, strategic risk selection and smart pricing?
We hear you.
We understand that your underwriting and rate decisions are your secret sauce. Your loss ratio depends on adherence to a tight set of underwriting rules. Of course, you don’t want to take on accounts that don’t fit your appetite.
We’re not suggesting that you change any of that. We’re simply saying that it’s possible to strategically outsource many related insurance policy servicing tasks, so your internal team has more time to focus on those crucial underwriting and pricing decisions.
Intrigued? Here are six ways your company can leverage insurance policy servicing outsourcing to fuel growth.
1. Inspection Reviews
Let’s say you quote and bind a homeowners insurance policy subject to a property inspection. The inspection is completed, and now someone needs to review the report and enter into your system.
Inspection reviews like this can eat up time, making this a good task to outsource. If there’s an issue, it can be flagged for review by someone on your team. Otherwise, there’s no reason to hassle your team with a task that can just as easily be done by a BPO provider.
2. Renewal Reviews
When a policy is up for renewal, it needs to be reviewed. Often, this is a standard process that can easily be outsourced. If the risk has changed, the policy can be flagged for review by your team. If there is no change in the risk, the renewal can be processed without distracting your team from other tasks.
3. New Business Reviews & Processing
You need new business if your company is going to grow. A high volume of new business is great in theory, but the downside is that it can overwhelm your team. Hiring and training more workers is a commitment that you might not be ready to make yet. Outsourcing provides another option.
A BPO provider can review and process new business according to your company’s rules and appetite. A BPO provider can also handle administrative tasks related to entering data into your system and handling policy issuance.
4. Endorsements
Endorsements are often fairly straightforward, but they can still eat up your team’s time, so this is another good opportunity for outsourcing.
For example, let’s say a customer has moved and needs an address update. This happens a lot and processing the new endorsement can take time and resources. You can easily outsource this task along with other endorsement updates.
5. Recovery
Imagine that you have to implement a coverage provision change. A large number of policies are impacted, and even though the change is fairly straightforward, it needs to be done by hand.
An undertaking like this could stretch your team too thin, possibly to the breaking point, and it would distract your team from other important matters. By outsourcing this task, you can get the job done without burdening your team.
6. Servicing a Minor Product Line
You may have minor lines that you offer in addition to your core business. While these lines need to be handled correctly, they can become a distraction from your core business.
For example, maybe your focus is on homeowners and auto insurance, but you also offer standalone earthquake insurance policies. Your team might not be as experienced in earthquake coverage, and because it’s not your company’s focus, there may not be much incentive to become more experienced.
This is a good opportunity for outsourcing. You can outsource servicing of the minor product line so your team can focus on your core business.
Are You Ready for Big Growth?
When a company tries to do everything in-house, growth can be difficult. Workers become overburdened. Things fall through the cracks. Mistakes happen. By outsourcing insurance policy servicing, you can avoid these growing pains. Covenir is here to give your team the support it needs. Contact us to learn more.