Insurance companies are constantly trying to strike a balance between supporting policyholders, satisfying stakeholders, and remaining competitive in a rapidly growing industry. As a result, more insurers are turning to third-party insurance business process outsourcing (BPO) providers to bolster their operations.
With the global business process outsourcing insurance industry market exceeding $7.5 billion in 2024, it’s clear that BPO assistance has become a critical mainstay for today’s insurers. Outsourced support enables insurers to quickly respond to fluctuating demand — without sacrificing the quality of their customer service or bogging down their budget with bloated hiring practices.
By leveraging insurance BPO support across multiple business functions, insurers can remain competitive and pursue long-term growth, regardless of how the market changes.
The Challenge of Scaling in the Insurance Industry
Between processing claims and managing benefits, the field of insurance is notorious for its complex bureaucratic processes and tedious administrative tasks. Because of this, insurers often find it difficult to maintain their operations and pursue long-term growth. Additionally, insurers are often at the whims of sudden surges and declines in demand, making it challenging to maintain a full-time staff without wasting valuable resources.
Why Traditional Staffing Models Fall Short
In order for insurers to successfully serve all of their customers, they need to have access to sufficient workers at all times. For companies using traditional staffing models, that means they would need to always have internal staff on hand to prepare for potential surges in demand. Essentially, they would need to over-staff, just in case there was a major storm or other event that caused claims to skyrocket suddenly.
Ultimately, maintaining extra staff isn’t budget-friendly or sustainable for the long term. However, if insurers stick to a limited staff, they would leave customers in the lurch during peaks in demand, slowing down the claims process and ultimately losing business. Business process outsourcing provides the flexible support that traditional staffing models simply can’t achieve.
How Flexible BPO Staffing Models Work
Business process outsourcing companies specialize in handling a variety of administrative and back-office tasks. Cross-trained representatives are able to handle a wide range of tasks, including insurance claims processing, data entry, and customer service.
Because BPO providers work with several clients across multiple industries, they’re able to maintain a large, flexible workforce, effectively resolving insurance staffing challenges. During busy seasons or unexpected surges in claims, they can quickly and efficiently allocate staff to handle the increase in volume of calls, claims, and other administrative duties. Thanks to BPO adaptability, insurance clients can provide consistent, reliable service without having to pay the extra overhead of operating a large internal team.
Benefits of Flexible Staffing for Insurers
Along with supporting general insurance scalability, outsourcing has several advantages for insurers. The benefits of insurance BPO services can range from lower costs to improved customer support, resulting in an overall boost to business operations and public relations.
Reducing Overhead Costs Without Sacrificing Quality
Outsourcing claims processing makes it possible for insurers to save on operational costs without impacting the customer. The costs of maintaining a large internal team, including salaries and office expenses, can quickly add up. The cost of recruiting and hiring seasonal employees can also be a massive burden. Because BPO companies offer claims processing services at scale, they can provide a high level of quality at a low price.
Improving Response Times and Customer Satisfaction
Processing claims is at the center of any insurance company. Carriers need to be able to resolve claims quickly to keep their budgets balanced and uphold customer satisfaction.
Outsourcing improves claims processing by providing helpful call center staff who can assist in each step of the process. When customers call asking for updates or sharing information, the BPO team can quickly connect them with a knowledgeable agent, even during peak call times. This encourages customer loyalty and retention, ultimately supporting future growth.
Ensuring 24/7 Customer Support Without Overstaffing
Claims processing BPO providers often have 24/7 call and chat support for insurers. This is especially important during seasonal surges in demand when customers are making claims around the clock. With support from a third-party call center, insurers can provide immediate service at any time of day. This allows them to accommodate seasonal and event-based surges without having to bring on more permanent staff members. Additionally, call centers often have advanced routing technology that help keep wait times low, so customers won’t have to wait on hold, even during the busiest times of year.
Best Practices for Implementing a Flexible BPO Model
Between the cost savings and effortless scalability, it’s clear why businesses prefer BPO call centers for insurance. However, it’s important to choose the right outsourcing partner who understands the insurance process in BPO and can help implement a gradual onboarding plan.
Look for providers who are experienced with claims processing and other industry-specific tasks. Then, have an in-depth discussion about your current operations, systems, and tools in-depth. The right BPO organization will be able to work with you to determine your staffing needs and connect you with flexible support staff so your internal employees can focus on building the business.
Scale Your Insurance Business with Flexible Staffing Solutions
BPO support makes it possible for insurers to scale effortlessly so they never have to lose out on business due to a lack of staff or resources. Strategic outsourcing has the potential to speed up claims processing, improve customer support, and cut costs for insurers. With the right BPO partner, carriers can enjoy sustained growth without having to take on the burden of extra overhead costs and large up-front investments.
When unexpected situations occur, people rely on their insurers. Meanwhile, those insurers rely on ConfieBPO. At ConfieBPO, we can activate our network of claims specialists, call center representatives, and other back-office professionals to assist at a moment’s notice. With scalable support in place, you’ll be able to keep up with the highs and lows of the industry, all while maintaining your brand integrity.
Explore how outsourcing can help your business grow by calling 800-684-2276 or submitting an inquiry online today.
