Growth is coming to the world of outsourced insurance functions. In fact, between 2023 and 2028, the insurance BPO services industry is expected to grow at a compound annual growth rate of 5.4%. And that’s great news for an industry that benefited hugely from the digital transformation brought about during the pandemic.
Since the Covid-19 pandemic, many industries have shifted to an exclusively digital way of working, and insurance is no different. With technology developments in underwriting through to the claims process, there are still some areas of insurance that are best done with a human-first approach.
The human touch in insurance
No matter how many functions are digitised, people remain at the heart of insurance. That’s because it’s an industry that needs empathy, understanding, and nuance that even the best artificial intelligence hasn’t mastered yet. But the skills shortage is having an impact on every industry, so a digital approach might be the most reliable way of keeping your insurance business working. One way of embracing ongoing global digitisation is handling some insurance functions remotely.
Outsourcing means that insurance companies can skip the skills shortage by tapping into a market powered by skilled professionals, many of whom are available on call, keeping your business moving 24/7. One of the many outsourcing services and solutions Indigo 21 offers is in the insurance sector. Before we dive into what that means, let’s take a look at what else is changing in the world of insurance and how it may impact people working in the industry.
The “as-a-Service” model
Many industries have embraced the “as-a-Service” model, and Insurance-as-a-Service, or InsurTech, is transforming digital business in the insurance sector. After a crash in 2021, SaaS is facing something of a rebirth. Insurers take note: any part of your offering can be transformed into a digital solution, so the “as-a-Service” model will continue to change and grow, and ultimately can be outsourced to remote teams.
The rise of AI in insurance
Artificial intelligence, or AI, is a huge part of the future of insurance. McKinsey has predicted the four things to shape AI most will be:
- Data from connected devices
- Physical robotics
- Open-source and data ecosystems
- Advances in cognitive technologies
If that all seems a bit far away right now, the ones to watch in our opinion are automated underwriting services and how data can be interconnected to serve your customers best. At this stage, AI still requires programming and even deep machine learning begins with humans — so even in an AI setting, people are crucial.
The claims process
According to McKinsey, both simple and complex claims will continue to be managed by humans. The complexity, nuance, and empathy required by customer service and claims teams aren’t soft skills yet replaceable by machines. That’s a relief! However, in future, AI programmes or other automated systems may be responsible for deciding who gets a pay-out.
The ESG efforts
Humans continue to have the upper hand when it comes to a company’s environmental, social, and governance (ESG) efforts. But ESG isn’t solely about carbon emissions and planting trees. One sustainable choice could be outsourcing some of the business processes or functions. For example, outsourcing staffing could make savings on office space, salaries, and boost the economy in the country in which you choose to outsource your functions.
Which insurance functions can be outsourced?
It might not surprise you to learn that you can outsource each of the functions listed above. From service models to the claims process, to developing software and reporting FNOL, everything can be done offshore. Whether you need a remote team to handle incoming calls or first notification of loss functions, claims handling or software development, Indigo 21 can connect you with the best remote outsourcing teams in the Philippines.
The Philippines is a country that’s perfected the art of BPO services. The Manila Times recently called the Philippines an “outsourcing powerhouse”, and we have to agree. The industry employs more than 1.3 million people, highly skilled in technology and service, and the industry is helping to improve the country’s economy and feed much-needed cash into rural redevelopment, too.
For cost savings, space savings, and round-the-clock support, choose Indigo 21 for your insurance outsourcing functions.