Insurance Outsourcing Trends to Watch Out For
Outsourcing has plenty of pros and cons to consider for busy insurance professionals. It can mitigate hiring costs and preserve a company’s resources, but it can also be costly and lead to a loss of control. These factors are significant for insurers who may be considering insurance outsourcing services.
If you’re wondering how to outsource insurance — and whether it’s the right choice — take a look at the following trends emerging in the industry.
Insurance Outsourcing Services Will Become More Popular
Outsourcing certainly isn’t a new trend, but it’s recently gained new momentum in the insurance industry. This is primarily due to the emergence of insurance outsourcing companies like Virtual Insurance Pro that handle time-intensive tasks on behalf of insurance agencies.
The increased popularity of these companies is one of the most critical trends affecting insurers, and it’s quickly gained traction because of the many benefits they can offer to agencies. Some of these advantages include improved efficiency and minimized labor costs, particularly in the face of a tight labor market and high costs associated with recruiting and retaining top talent.
Customers Will Take Over Many Management Tasks
In addition to insurance outsourcing services, agents can also find ways to empower customers to handle some of their own concerns. Research shows 81% of consumers prefer self-service options for simple customer service tasks.
This trend is a win-win for insurers because it allows customers to resolve simple matters themselves, thereby boosting client satisfaction rates and freeing up insurance professionals and their support staff to focus on high-value activities.
As a bonus, customers who can obtain answers to their own questions will likely feel a greater sense of investment in their policy, making retention more likely.
Insurers Will Explore the Opportunities and Limitations of Artificial Intelligence
Artificial intelligence (AI) has rapidly risen to the top of trend lists in every industry, including insurance — and with good reason. AI is responsible for many amazing innovations, including underwriting automation and advanced fraud detection technologies. It’s one of the most promising types of insurance outsourcing services, allowing for faster claims processing, a better claims experience, and reduced underwriting operating costs.
At the same time, AI’s limitations are becoming apparent. While AI can handle simple underwriting tasks, for example, it may not be as accurate as a human specialist capable of gauging ambiguities and uncertainties related to risk management.
Insurers Will Focus on Outsourcing Skilled Tasks
The limitations of AI make the value of skilled labor apparent. Some tasks require a human expert. It is especially true in an industry such as insurance, where the quality of customer service is imperative. More agents are choosing to outsource insurance services such as claims management, billing inquiries, and email communication. Enlisting help from insurance outsourcing services is one of the most reliable ways to take care of these tasks.
Insurance Outsourcing Will Take on More Tasks
Insurance industry trends indicate a precise movement toward outsourcing tasks and preserving internal resources. That’s great news for insurance agents who want to streamline their workflows and improve the overall efficiency of their operations. Finding the right outsourcing service organization can help you achieve these goals while still maintaining the high standard of service that your clients have come to expect from you.
About Virtual Insurance Pro
Virtual Insurance Pro offers specialized services to insurers and individual agents, including phone support, claims processing, customer service, and carrier requests. Our workforce of skilled professionals is based in the U.S. and ready to handle the most time-intensive tasks so that you have more resources available. For more information, reach out to us at (877) 853-9382 or email us at info@vinsurancepro.com.
Tags: Insurance Outsourcing, virtual assistant, Virtual Insurance Pro