Previously, we have discussed how outsourcing can help organizations respond to unexpected events, and how it can help banks stay compliant and keep accounts updated. Now we’ll discuss how outsourcing a project can help insurance firms support customers’ needs and focus internal resources on core tasks. Often, when insurance firms begin a strategic initiative such as digitization or system upgrades, it can trigger a high volume of repetitive or manual processes. Outsourcing the response to that volume spike is a good way to give the initial project the attention it needs without disrupting the customer experience.
Challenge: Increased need for customer support efforts triggered by digitization
The shift to digital is well underway within the insurance industry, with many firms accelerating their transformations due to shortcomings uncovered during the pandemic according to a 2021 Deloitte survey of insurers. Deloitte found 95% of respondents plan to increase their digital capabilities over the next year.1
As insurers digitize their customer experiences, their customers often must access a platform via a new user interface or a new secure access protocol. As their policyholders, distributors, and agents adjust to the changes, they may require additional education and information, prompting a customer query. The uptick in customer queries can easily overload existing resources and diminish the customer experience. With insurers planning to speed up their digital transformation efforts in 2021 and beyond, an increased need for customer support efforts is a trend not likely to abate anytime soon.
Outsourcing customer care support to a third party, such as SS&C’s Event Center, allows firms to better manage internal resources and continue to focus on their core activities. We can deploy digital tools and technology quickly to support our clients' more urgent customer support needs. For example, our customer support efforts can include custom informational and interactive websites or tailored interactive voice response (IVR) systems that guide customers through a series of frequently asked questions with the option to speak with a live customer care representative using scripted responses approved by the client.
Challenge: Increase in specialized tasks with the adoption of new technologies
With the need to shed fixed expenses and increase operational efficiencies among insurers, the pressure keeps rising for the industry to adopt new technologies. Potential benefits include a 40% reduction in IT cost and a 40% increase in operations productivity, according to research from McKinsey.2 System upgrades, conversions, or entirely new deployments are large projects with many moving parts. These projects require internal resources to focus on specialized tasks. However, these projects also require data review or remediation—involving repetitive or manual processes—which can be burdensome for internal resources. As firms move away from legacy systems or consolidate disparate systems, it is often necessary to create a profile from multiple sources.
By outsourcing those repetitive tasks to a third party, firms can free up internal resources to focus on core tasks. SS&C’s Event Center is experienced in working with large data sets and has the systems infrastructure and resources to review, compare and remediate files containing client books and records.
Challenge: Strained resources due to the updating of books and records
Insurance companies must keep accurate books and records of their policyholders. Periodically, these books and records must be reviewed to ensure they are up to date and accurate. For instance, a policyholder may need to update a beneficiary. Contacting policyholders to update their account information is a time-consuming one-off project, and involves tasks that can burden internal resources.
One way to free up internal resources is to outsource account remediation to a third party with a service like SS&C’s Event Center. SS&C is able to review the records while accessing your environment or using our own systems infrastructure. Once we determine which accounts require remediation, we will contact the policyholders and obtain the missing or outdated account information. Then, we can load it to your books and records or provide a number of options for you.
Outsourcing projects like the scenarios above can add real value, to both a firm’s bottom line and the customer experience. Through short-term or seasonal outsourcing, you replace a fixed cost with a variable cost structure. SS&C’s Event Center operates in a secure systems environment with industry-leading security protocols, giving you and your customers peace of mind that sensitive information stays secure. Most importantly, outsourcing allows internal resources to focus on core business activities and strategic initiatives.
To learn more about how SS&C’s Event Center can help your firm, download our Event Center Overview or contact us.
1 2021 insurance outlook
2 Top ten myths of technology modernization in insurance