Successful business process outsourcing (BPO) helps insurers become more efficient, boost their competitiveness, and reduce costs – all while allowing them to put more resources into their core business.
While the benefits of partnering with the right BPO provider are numerous, insurers must have strong communication with internal and external parties to fully enjoy these advantages and continue providing a quality service to policyholders.
Let’s discuss why communication is so important for outsourced business processes and review some helpful tips.
Understanding Insurance BPO
At the basic level, when an insurer decides to outsource their business processes, they’ll hire an external company with expertise in those particular tasks. This can involve several functions, like customer service, underwriting, claims processing, data entry, and more.
The main draw for insurers to implement outsourced business processes is to save money and improve efficiency since they no longer have to hire and train employees for these tasks. Insurers also gain access to specialized skills and expertise that they may not employ in-house, meaning they can provide a better policyholder experience.
But working with a BPO partner doesn’t come without challenges, especially in terms of communication.
The Role of Communication in Outsourced Business Processes
Effective communication is a crucial aspect of employing outsourced business processes. Insurers must communicate clearly and consistently with their partner to ensure outsourced tasks are completed accurately and on time.
One of the biggest communication challenges in outsourced business processes is the potential for miscommunication and misunderstandings, leading to a poor experience for policyholders.
To overcome these challenges, insurers must establish clear communication protocols and guidelines with their BPO partners, such as setting up regular check-ins to discuss progress and establishing clear project expectations and deadlines.
Communication Best Practices
To make the most of their BPO partnership, insurers can:
Establish Clear Expectations
From the beginning of the partnership, it’s critical to establish clear expectations and objectives for any outsourced tasks. This can include defining the scope of work, expected timelines, and deliverables. Clear expectations will ensure that both parties are on the same page and everyone is working towards a common goal.
Choose the Right Channels
There are many communication tools today, but not all of them will necessarily be the right fit for communication between insurers and BPO providers. Both parties should agree on which communication channels they’ll rely on for consistent and reliable collaboration, like email, messaging apps, video conferencing, and more.
Develop Communication Guidelines
Establishing contact points can help both parties maintain clear communication lines. This doesn’t just have to be one member from each team; instead, they should share the contact information for any relevant staff of either team that would be helpful to get in contact with should an issue arise. This will help ensure that any question or concern is quickly addressed and resolved.
Maintain Regular Contact
Once the partnership has been established and the BPO provider has taken on specific tasks, regular meetings should be held to discuss progress, resolve issues, and adjust expectations and timelines as needed.
Making the Most of a BPO Partnership
Prioritizing communication can mean the difference between a disappointing partnership and one that helps insurers run a more streamlined insurance operation. Maintaining clear and consistent communication is an effective way for all parties to get on the same page and work towards a solution quickly and efficiently.
Effective communication can reduce errors and delays, increase efficiency, and improve policyholder satisfaction – ultimately helping improve an insurer’s bottom line.
Maximize Your Results with Covenir
When you partner with Covenir, you can feel confident that you’re outsourcing your crucial business processes to a skilled, experienced, on-shore team that believes in the importance of communication.
With seamless integration into your operations, we provide all the missing parts you need to run your business run more efficiently and never make you question if the job is getting done to your standards. We have extensive experience in customer service, FNOL and claims, underwriting support, policy advising/sales, print and distribution, and virtual mailroom services.
Contact us today to learn how we can help you stay competitive in the evolving insurance marketplace.