August 18, 2011: Technology and innovations are inevitable in any business. Any company, no matter small or big has to avail the service of innovative technologies to provide solutions for the customers.
According to the recent study conducted by the Everest group-a global research analyzer, the insurance sector companies are now looking forward to get out from the shadow of BFSI market and are planning to adopt insurance Business Process Outsourcing (BPO) for better services and solutions.
The study reveals that the insurance companies are evaluating the potential in using BPO services and how well an outsourced operating model can enhance their growth potential. Factors such as operational issues and technological drawbacks are the haunting issues for the insurance companies at this point of time. Legacy processes and IT systems are turning out to be major bottlenecks for large insurance companies to become agile and flexible in meeting the challenges.
At the meeting conducted by the Customer Advisory Board (CAB) on the issues faced by the insurance sectors, the same topic was discussed at length. Top officials of the various insurance companies, who participated in the meeting discussed on the necessity of innovations and technologies in the sector. The insurance sector companies are well aware of the strength and weakness they posses in the shivering global market. Meeting the various demands of the customers and managing the cost pressure is the priority of main stream companies in the sector.
Authorities believe that switching to outsourcing will not only enhance the current functioning of the sector but also help risk management. Problems such as transitioning issues and lack of innovative solutions for the insurers can be minimized by outsourcing.
We have seen the banking industry doing well in the market by outsourcing the services. As the challenges faced by the insurance industry is immense and vivid, optimistic expectations are heavy in the industry with companies stepping towards outsourcing.
The scope for BPO adoption in the insurance sector is very high. Investing more for technological advancement and innovations will enhance the business in the life & pension (L&P) and property & casualty (P&C) insurance segments.