Top 3 Benefits of Insurance Claims Business Process Outsourcing

The traditional insurance claims administration process is extremely convoluted. It involves multiple steps for verification and evaluation to finally settle claims.

Insurers’ dependence on outdated technologies and manual labor compounds the claims administration process complexity. This further slows down the process and have a negative impact on customer experience.

Such process shortcomings and complexities have reinstated the importance of insurance claims business process outsourcing. Here’s looking at the top 3 benefits of outsourcing this process:

Leverage Business Analytics

Separate departments in an insurance organization have their individual data repositories. It becomes a major headache for claim adjustors to find a specific data from such multiple databases.

Third-party claim administration service providers leverage business intelligence tools. These tools gather data from different repositories. It has visualization features that present the gathered data in an easy-to-understand format.

It becomes easy for claim adjusters to access the data at any time, analyze it, and take necessary decisions.

Improved Fraud Claims Detection

Fraudulent claims cost a significant portion of insurers’ annual revenue. Large insurance enterprises may have reserve capital to absorb such losses, but small or medium-sized companies are adversely affected by such claims.

Experienced insurance business process outsourcing providers leverage analytics tools to contain fraudulent claims. These tools analyze applicants’ past claims history. History about the types and the frequency of claims they have filed. If it does not fit the established pattern, the tools automatically flag the particular claim.

Fraudsters generally file claims of low value. They expect that such low-valued claims will go unnoticed. However, advanced analytics work on machine learning principles. They conduct cluster analysis to detect low value fraudulent claims.

Communication with Customers

In-house call centers are often inundated with customer queries. Most of these queries are redundant. In the process of responding to such repetitive queries, agents tend to overlook critical queries related to claims.

Third-party service providers bank on proactive communication with customers. This reduces customers’ chances of facing damages for which they will later file a claim.

For automobile insurance sector, BPO service providers establish an omnichannel communication platform. Through this platform, they relay vehicle repair status updates to customers. This effectively reduces chances of automobile wear and tear, thereby eliminating chances of claim filing.

Parting Note

It is important that insurers take utmost care while outsourcing insurance claims administration. With the right partner, insurers can achieve benefits in the form of process efficiency and cost savings. Communication methods, round-the-clock availability, experience in your field, technology adaption are some of the factors that insurers must consider while partnering with an insurance BPO service provider.