Insurance companies often face extreme pressure for improved performance, running profitable operations, and delivering better customer service. Integrating Business Process Management (BPM) in insurance sector facilitate companies to gain competitive advantage by improving customer service and increasing profitability in running the operations. The article discusses the key benefits of adopting BPM practices in insurance sector.
Benefits of BPM in Insurance Sector
BPM ensures significant reduction in manual effort and hence reduction of cost. It also adds to the elimination of unnecessary tasks, reduction of work time and improvement of overall operational efficiency. Such factors attribute to increased business performance so that business firms can attain higher profitability in the long run.
Superior underwriting by automation
BPM often helps companies to redefine their underwriting process and to make it more standardized. With process standardization, the underwriting personnel can concentrate more on doing knowledge-based functions and less on performing those routine process steps. This can improve business processes.
BPM suites enable elimination of mundane tasks like data entry, manual reconciliation, and visual data verification, by automating processes in efficient manner. This along with elimination of paper based transactions ensures enhanced productivity in business.
Aligning IT execution with business strategy
BPM helps in achieving combined business efforts by aligning business users, analysts, and IT staff under one roof. BPM facilitates a Service Oriented Architecture (SOA) to operations so that the company can move in sync with changing customer needs and market trends.
Real time visibility and process control
BPM provides regular monitoring of real time business performance to track the activity status every time. This helps to tackle complex real time issues in a much more efficient and automated way.
Continuous process improvement
BPM lets processes and rules to get updated over time so as to gain improved competitive advantage. This is made possible by regular monitoring and redefining processes.
Improved Customer Service
By automating information flow, notifications, and alerts, BPM allows customers to have better access to information. Speedy operations, reduced service times, etc ensures better services for customers
All these benefits can attribute to the long term success of any business. BPM platforms can be implemented in-house or it can be sourced from external vendors. Buying BPM platforms are much advantageous over the other, as it is cheaper, faster and superior.
Growth of insurance industry is much dependent on improved operational efficiency and improvement in cost reduction. BPM technology helps to achieve all these objectives and to face challenges without any difficulty. It is now emerging as a major trend in business that integrates interactions between systems, human decisions and business processes. Therefore it is critical to implement BPM in full fledge mode for insurance firms, irrespective of the size and scale of operations.