Lets say a health insurance company in Texas sells a insurance policy, it is likely that the back office paper work is processed in Pune or Hyderabad. India BPO has emerged as the leading companies for back office tasks required by the US insurance companies. They are able to cater to any case, be it casualty insurance, life insurance.
We have an advantage in this area of work as the nature of the outsourcing tasks are almost 100 percent non voice and requires much special domain expertise to execute. Insurance back office jobs include:
- Case management
- Includes record changes,
- Setting up new accounts
- Underwriting and
- Risk management
- Administration Policy Maintenance
- Collateral verification
- Voice and email based customer services.
- Claims processing
- Validation of claims
- Reinsurance adjudication
- Account settlement.
- Expert Knowledge services
- Data mining
- Management and analysis
- Underwriting Analysis
- Actuarial and statistical reporting
Billing rates across the five categories range between $10 and $35 per hour, according to industry estimates. The nature of the work for insurance has been divided into core and non core services. Core services include tasks like underwriting and claims. Non core services include tasks like human resource and benefits administration.
Depending on the complexity of the process Outsourcers are able to cut down costs by 15% to 35%. According to Nasscom, the US and Europe are the two key insurance BPO markets for Indian vendors, accounting for 60percent and 20 percent of the revenues respectively.
In the Indian Outsourcing scenario, some of the market segments which Indian companies cater to :
- Property and casualty,
- Claims adjudication,
- Life ,
- Health ,
- Annuity etc.
Insurance is being one of the top three leaders in the industry verticals. The insurance market is dominated by less than 10 top rung third party players, who together account for nearly 62 per cent of the market. Captive players have an 18 percent market share.
Globally, insurance companies face many rising claims and underwriting losses. According to reinsurance and truancy services group Swiss Re, global insurance in property, casualty and life and health totaled to 3.2 trillion in 2004. Owing to the natural disasters and terrorism, we see a raise in claims. The claims due to hurricanes in 2004 owed to 27.5 billion in 2004, and crossed about 46 billion in the year 2005. Offshoring work to a third party vendor will offer low costs with immediate benefits.