When insurance agencies select BPO vendors, it is an never alternative. You can benefit more when you engage more than one services provider for comparison. Here are a few tips for why you need to select more.
1. More Flexible Management of Operation
Some insurance agencies delegate their personal line, commercial line and accounting department operation workload to competing outsourcing teams. This makes for more flexible management when peak season arrives and results will be obvious.
2. More Stable Service Delivery
When you select a back office service, you may expect their work to be stable as a machine. Actually, a virtual operation team consists of real people. When encountering special situations such as regional conflicts, political instability, natural disasters, pandemics (COVID-19) or legal issues, outsourcing vendors are not able to ensure high quality delivery. If you have a backup team, you can easily assign the workload to another service without affecting your in-house team.
3. Measurable Service Quality Against Other Providers
Sometime you may doubt your vendor’s service accuracy and efficiency. If you engage two vendors, you can assign the same process to different teams and know their service quality. It would be quite easy for you to compare their accuracy, daily productivity and contract details: data will never lie.
4. Stimulate Your Insurance Outsourcing Vendors
When your current vendor knows you have invited another service provider, they both will work much harder to demonstrate who is better. You will stimulate both of them with no extra effort.
5. Minimize Pricing Increases
Most outsourcing vendors set up a 2% to 5% annual goal for pricing growth. That will challenge the relationship between the insurance business owner and service provider. If you have more than one vendor, you can easily rely on, and transfer more workload to, the lower price outsourcing partner.
Engaging in more outsourcing services will not only ease your leadership and operation management, but will benefit you more than you know for your service delivery. Now, try to find one more partner and start delegating.
