Insurance companies face stiff competition in customer acquisition and retention. Survival requires the companies to focus on increasing their operational efficiency by introducing cost-effective business processes. This discussion focuses on the challenges faced by insurance companies and how insurance business process management can provide effective solutions.
Even though many industries welcomed the concept of business process management, the insurance sector was slow to adopt BPM in their functions. This could be mainly because of the sensitive nature of the core processes such as claims and underwriting. However, with the widening scope of insurance services and the increasing customer expectation from the service providers for faster claim processing and settlements, it became imperative for the insurance companies to introduce BPM in their functioning.
The insurance sector deals with multiple products such as life insurance, health insurance, vehicle, or commercial insurance. The resultant complexity brings many challenges to the business process. Customers usually get frustrated because of the lack of transparency and delays in the system. There is often opacity around the status of the claims. Besides this, many customers are irked by the need to enter repetitive data while filling the application forms. The procedures are usually manual leading to higher administrative overheads.
Challenges in insurance services – resolution with business process management
The insurance processes are mostly repetitive and manual. Business process management can bring higher ROI for the insurance companies.Let’s see the major challenges faced by the sector that the insurance business process can resolve.
- Claims processing – Insurers find fast and efficient processing of claims a tough task to handle. But this is a determining factor for customer satisfaction. Claim processing is usually tedious and time-consuming as the agents need to gather data from multiple sources. They might need to refer to driver’s license, medical certificates, or police reports. Human errors because of data mismatch could delay the process further. This is highly damaging to the company’s reputation. Automating the claims process can reduce the manual work and increase the speed of processing significantly. It also reduces errors and improves customer experience. Insurance BPM can cover the complete process from claims intake to claims settlement.
- Insurance policy management – Trust is the key factor that sustains the insurance business. For customers to trust the company, they need fast and efficient processing and response throughout their interaction. This begins from filling out the application form to policy issuance, claims settlement, and grievance settlement. Since the policy management cycle in most insurance companies is predominantly manual, it leads to unnecessary delays and frustrating data entry errors. By automating the policy management operations, the insurance company can streamline the operations, introduce transparency, promote faster communication, and reduce delays.
- Underwriting – The process of underwriting is based on rules and involves analyzing information from several sources to reduce the risks involved in a policy. There are many factors to consider like the health conditions, credit history, and net worth of the applicant. In many instances, complicated cases require services of specialized underwriters. Insurance BPM would simplify the process of evaluation by offering risk models and other tools to aid decision-making. This can ensure consistency and improve regulatory compliance.
Insurance BPM would result in significant benefits to the business because of standardized workflows, reduction in the processing cycle, and enabling transparency. Companies can provide better customer experience and enjoy higher profitability.
SBL supports the insurance business process management with solutions to streamline claim receipt, data capture, re-pricing claims, pre and claim adjudication, claims re-work, error correction, post-payment audit, and dispute resolution. We provide accurate and reliable data entry services to help you focus on your core operations. Our insurance BPM is well-equipped to deal with the end-to-end process management requirements of the insurance companies. Contact us today, to understand our diverse solutions to simplify your insurance business process.