Claims handling processes in the insurance industry require a lot of technology and human resources. That is why, to improve customer satisfaction and reduce costs, insurance companies are always looking for ways to reduce handling times. This is where outsourcing claims management comes into play as it can help businesses to streamline their claims process and improve overall efficiency.
But is outsourcing claims management the right choice for your business? In this article we will review the key factors to consider.
What is Claims Management Outsourcing?
Outsourced insurance claims handling means sending claims to a third-party organization that becomes responsible for managing all the steps within the claim and resolving it in the least amount of time.
This can include a range of activities, such as claims processing, investigation, and resolution. By outsourcing these activities, businesses can benefit from the expertise and resources of specialized claims management providers, without having to invest in the infrastructure and personnel needed to manage claims in-house.
Claims management outsourcing can also be customized to meet the specific needs of each business, ensuring that the outsourcing partner provides services that align with the business’s goals and objectives.
Why outsource your insurance claims handling?
Insurance companies are constantly searching for ways to improve their overall competitive advantage. Having dedicated outsourced insurance claims processing teams is one way to start. These teams have the experience, knowledge and skills required to process various insurance claims.
Here are the top 5 reasons why many organizations have embraced claims outsourcing:
1. Cost reduction
Claims Management Outsourcing can have a strong impact on your finances. Handling claims requires a lot in terms of workforce capacity and infrastructure. Not to mention the amount of time and resources it takes to process claims and fulfill compliance requirements that would be better spent on what matters in-house more (like establishing marketing strategies or maintaining key stakeholder relationships).
2. An improved customer experience
Today’s consumer expects fast and quick results while feeling supported and cared for throughout their claims process. Claims usually arise because of stressful events. If you want to retain customers long-term, you need to make sure the entire claims process is stress-free and easy for them.
Claims Management Outsourcing entities have high customer service standards for insurance claims handling and customer experience. It is even recommended that you liaise with your outsourcing provider to develop key performance indicators (KPIs) and communicate expectations around customer service.
3.Access to InsurTech
Experienced Claims Management Outsourcing providers are aware of the advanced technology insurance companies use for claims handling. By partnering with these third-party providers who understand InsurTech, you can move your claims handling processes to a more efficient and digitally driven environment.
4.Business scalability
Claims Management Outsourcing can help increase profits and enhance your business’ growth. By adding the extra capacity your team will have more time to take on more work and grow your business sustainably. You’ll be able to shift your employees’ focus to improving customer relationships when they know insurance claims are taken care of.
5.Increase flexibility and efficiency
Claims Management Outsourcing will allow you to quickly and easily grow your team according to your business needs.
If a surge in insurance claims comes through, you can easily scale your team offshore by hiring more claims processors to take care of the increased workload. Claims Management Outsourcing allows you to add or remove claims processors depending on the claims market requirements.
Keep in mind that it is important to carefully consider the needs of your business and the capabilities of potential outsourcing partners before deciding. With the right partner and approach, outsourcing claims management can be a game-changer for your business.
What claims handling tasks can be outsourced?
A wide range of claims handling tasks can be outsourced to third-party claims management service providers. Some common examples include claims intake and registration, data entry and verification, claims investigation, damage assessment, estimation and adjustment, and claims resolution.
Claims Management Outsourcing tasks can include, but are not limited to:
- Reviewing claim submissions
- Obtaining and verifying information
- Correspondence with insurance agents and beneficiaries
- Preparing claim forms
- Record management and maintenance of insurance policies and claims in database systems
- Determine policy coverage and claim amounts.
Other tasks that can be outsourced include claims auditing and quality control, fraud detection and prevention, and customer service and support. It is important to carefully evaluate which tasks are most suitable for outsourcing, based on each business’s specific needs and objectives.
In conclusion, Claims Management Outsourcing is ideal for these repetitive, compliance-based insurance claims processing tasks, which require a high level of attention to detail.
An excellent way to manage your claims is Terra. To take a look at it, schedule a demo with our team.
