How to Transform Your Insurance Business with Expert Support
Offshoring of insurance services has become a strategic imperative for most insurance companies. Besides being a cost-control tool, it gives them an edge in this highly competitive industry. Mordor Intelligence says providers of outsourced insurance processes will see an average CAGR of 5.4% between 2020 and 2025, a steady global shift towards outsourcing. However, the transitioning of your firm’s insurance services to an offshore provider involves several key factors that need careful attention.
At the top of the list are the determinants in choosing the right outsourcing collaborator. Since there are many players in the market, you should weigh in on the service providers’ domain expertise, the portfolio and service history that they can showcase, and the delta change they have demonstrated for their clients.
The outsourcing company must have a milestone-linked implementation pathway, besides being compliant with business continuity, quality and control standards and having industry-leading certifications. If you have operations across multiple locations, the vendor should be able to support multi-center capabilities too.
However, there are also specific risks with respect to information security that need to be managed, especially since many people are still working from home. Partnering with the organization that has the required controls is the best bet.
Partnership is Key
What is the secret of a successful partnership between an insurance major and an offshore vendor? Not surprisingly, optimum outcome is achieved through a collaborative mindset: when you consider the vendor as an extension of your team. A symbiotic partnership increases the level of ownership in the vendor team, builds trust and results in marked process improvements. Setting up joint innovation teams across both organizations is vital. Innovation labs and ecosystems can help create new solutions and high-value outcomes without any risk to your business.
As the pandemic recedes, companies across sectors, including insurance, are keen to ‘transform’ their business. But you should always take an incremental, cautious approach to change rather than a big-bang transformation. Big changes can go sideways due to lack of strategic buy-in post implementation. Such big shifts may also lead to low internal adoption, often leading to workarounds and suboptimal outcomes.
BCG’s research on digital transformation success rates, goals, and priorities at more than 860 companies indicates that a mere third of the transformations meet or exceed their target value and achieve sustainable change. Maximum success was accomplished when organizations adopted a mix of point solutions and automations as a start, and then moved over to system-based integrations.
RRD could be the answer you seek. The global company provides services in all segments of the insurance space with some of the largest carriers, brokers and re-insurers as clients. From Product Management to Marketing, to Underwriting and Policy Acquisition, to Policy Servicing and Claim Management, RRD has deep experience in running optishore operations. Fifteen-plus years of experience helps us provide seamless operational delivery, generating cost savings via localized and systemic automations.
We work efficiently across multiple client locations and are flexible to your changing needs. We use a design-thinking approach to evaluate you processes before and during the consultation phase. RRD has a strong Service Delivery and Citizen Automation team that can collaborate to create process-augmenting solutions, without adding to your cost. In a nutshell: we transform without losing the soul of your business.