Cover Operation’s client owned model can perfectly address all your concerns about traditional insurance outsourcing. You are trying to wrap your brain around what client-owned really means in this article.
For traditional insurance outsourcing, insurance business owners select vendors with either a dedicated people business model or a transaction-based business model. Insurance firms transfer their workload to an off-shore service delivery office, then rearrange and downsize their operation team to improve profitability and cut costs. For medium to large sized insurance firms, it is not easy to rebuild your operation team. Are you going to select an irreversible and uncertain approach?
Some of the points below may be reason you have been unable to completely trust an outsourcing company:
1. You Need Their Benefits But Don’t Trust an Outsourcing Company
More than 45% of insurance agencies have engaged in outsourcing, but most insurance firms can only incompletely rely on their insurance outsourcing vendors and only keep 2 or 3 virtual staff for their low-value and routine tasks. Why do you doubt outsourcing vendors? It might because you don’t trust a virtual team. The situation has changed to you needing an outsourcing team. It is not a technical problem, it is a managerial issue. You do not feel confident enough to cooperate with and control your remote staffing team well.
2. Afraid Your Service Provider Will Be Out of Control?
Insurance owners have to face that you can bind the vendor in a contract, but you have to rely on their management. When encountering special situations such as regional conflicts, political instability, natural disasters, pandemics (COVID-19) or legal issues, can the remote service delivery team still ensure high quality service delivery?
3. Tired of Pricing Increases and Declines in Quality of Service?
After you rely on a virtual insurance operation team, you will have to deal with price increases and even declines in quality of service. You have the right, but are not able to refuse their aggressive proposals because you don’t have enough energy to change vendors. They fully understand that THEIR option is much better than your moving back and hiring a local staff. Additionally, you have to face an unfair contract with new terms and increasing prices every 12 months. It makes insurance owners feel there are many uncertainties to outsourcing approaches
4. Anticipate an AI Program but Also Have Concerns?
Cutting-edge insurtech can help you with low-value and routine date entry, document mail outs, document retrieval and even policy checking. Are you excited about engaging in it? The more you consider, you wonder whether the technical program is secure, or if it will be out of control or working for some opposing purpose. You are cautious of the program as it will have access to your sensitive internal data and documents. Furthermore, you have no ability to fight against a powerful system because your operation team has been dissolved, and it’s almost impossible to recall team members and run the operation as well as before.
What is the right way to engage in insurance outsourcing and its insurtech?
It is vital to establish a truly trusted and reliable partnership. Only a Client-Owned insurance business model can accomplish all of these.
Our unique client-owned business model lets insurance owners treat Cover Operation as their own, which encourages them to give their complete knowledge, working methods, capital and resources to support Cover Operation and therefore benefit from our growth.
1. A More Trusted Partnership
After selecting our client-owned model, insurance agencies can transform most of their operation workload and can confidently rely on their subsidiary company. You will not have to worry about your partner being too big and disregarding your business. The more powerful Cover Operation is, the stronger they will become for you.
2. Annual Profit Sharing
Being client-owned, client-owners will own company stock and receive profit sharing as Cover Operation is not set up as a non-profit. Pricing will no longer be a problem to be discussed. It’s a great investment. Owners will pay their fees and support their own company’s development simultaneously.
3. Attending Board Meetings for Cover Operation’s Direction.
Cover Operation provides a new business option for its client-owners, which allows them to attend our annual board meeting to decide the company’s future direction. They can talk about their operation quality, work methods, pricing, technology, processing office locations and future insurance trends. Client-owners’ voices and thoughts are much more important than a vendor’s. If some decision or direction is voted by more than 50% supporters, Cover Operation will take action to implement it as soon as possible.
4. Credible Technology
Insurance business owners may expect their insur-tech with robotic processing automation, machine learning and artificial intelligence will be together. When client-owners vote for developing insur-tech in the annual board meeting, and Cover Operation finally brings out such programs and present to its client-owners, you know you can trust it. Cover Operation understands who they are working for, we will never deceive you!
Based on all of above, a client-owned model will provide you the largest flexibility in insurance operation.
