Automating Insurance Back Office Management Boon Or Bane 75641 1 - Automating Insurance Back-Office Management - Boon Or Bane?
October 7, 2022

“A satisfied customer is what every business needs to grow and play in the long run.”

Insurance companies generate revenue by selling their insurance policies to customers and business clients. Several processes and policies work under insurance companies. Professionals who analyze and evaluate the risks work in the back office. Most of the employees of an insurance company are from the back office.

Today Customers’ expectations are incredibly high, and they are looking for more from the insurance BPOs, which drives them to work on a higher level.

Companies can’t resist the outdated legacy system and manual methods to achieve the customer’s demand and stand on their expectations in the best possible manner. The back office supports the front office, so companies started automating back office management.

Insurance Back-Office Management Services

  • Insurance Data Entry Services

Insurance BPOs deal with vast amounts of data daily for smooth functioning with data and insurance data entry services work.

  • Insurance Analytics Services

Insurance analytics services work when a business changes insurance models and improves process efficiency and operations.

  • Insurance Accounting Services

This service includes tracking expenses and managing accounts effectively.

  • Insurance Reporting Services

Services that help to stay updated in the insurance service industry.

  • Insurance Consumer Services 
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Services to provide a smooth and practical experience to customers.

  • Insurance Market Research

Keeping up with the market research always lands in finding new opportunities. This service provides updated market trends.

  • Policy Checking

Policy checking services include:

  1. Reviewing policy’s accuracy
  2. Ensuring the policy matches with the expected proposal
  3. Ensuring the accuracy of the final document
  • Accounting And Billing

Accounting and billing involve these insurance back office management services:

  1. Downloading reports
  2. Expense report tracking
  3. Agency bill invoicing

Pros Of Automating Insurance Back Office Management

Automation allows the business to optimize productivity, save time, money, and human efforts and recognize easier ways to generate more profits.

  • Scaling Business Opportunities And Benefits

Successful implementation of automation programs can be highly beneficial for insurance BPO providers. It allows:

  1. Save thousands of manual work hour
  2. Increase overall business productivity
  3. Increase the speed services by 80%
  4. Achieve a significant accuracy
  • Reduce The Manual Process Error Rate 

It is evident how human resources are losing their effectiveness with the increasing burden. So, it becomes essential to create a support system that can handle all the backend processes of the work. So the customer can consume the service without facing any error.

  • Speeds Up The Claim Process that Is Primary Source Of Customer’s Dissatisfaction
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From claim submission to rule-based fraud detection, it becomes a long and hectic process for employees to beat the time effectiveness criteria. Automation in the claim process comes as a right hand for the employees, and as a result, employees’ potential is used in the area where it is more important.

  • Promises End-To-End Automation For Standard Insurance Functions

Every customer expects some standard functions from every insurance BPO provider. 24/7 access, transparency in the process, access to the transaction history, product or service information, etc. Here Automation promises the customers to reach up to their expectations.

Cons Of Automating Insurance Back Office Management

  • Automation Costs More Than Performing Manually.

One thing that is ignored while thinking about Automation is the cost. It’s not only about the cost of Automation but the whole new maintenance cost that wasn’t there before.

  • Failure To Maintain The Automation Will Result In A Massive Loss Of Production.

Controlled and scripted back office software has a sophisticated and limited set of skills to control, acknowledge, and provide detailing to the process. So to keep the loop effective irrespective of all the minus points, it becomes essential to invest in maintenance in the fixed periods.

  • Miss The Personal Touch With Customers

The human touch is the central idea of excellent customer service. Automation is an integral part of artificial intelligence. Artificially pre-scripted solution sets can motivate the customers to the results but not add value that human work does.

  • Automation Brings More Complexity To Insurance Back Office Management Service
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Automation works as a flowchart or pre-strategist directions as the decision-making process becomes more complex for both ends. Customers continuously seek a convenient process rather than making it more complex and time-consuming. Sometimes, there might be contradictions between both ends as one acts in reaction mode and the second in response mode.

Data That Shows The Key Benefits Of Automation

  • 80% reduction in the internal processing time of insurance back office management services.
  • 70% reduction in end-to-end cycle times.
  • 23% improvements in SLA for front lines phone calls.

Conclusion  

Summing up the comparison, Automation is a significant adoption to help the workers, not to replace them. Businesses still need human touch to understand the mistakes and problems. However, Automation will indeed reshape the future, and those who don’t adapt to the change will not survive for a long way.

Insurance companies now realize they need digital solutions such as RPA (Robotic process automation) to build strong customer relationships. Still, it should be balanced so that it can replace the idea of being a boon with a bane.

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