FEATURE: OUTSOURCING
//////////////////////////////////////////////////////////////////////////
While many companies are
outsourcing to cut costs,
many have discovered that
a third party can perform
a function more effectively
as well. We look at how
the concept can be
used in insurance and
how digitisation is
the main driver for
Business Processing
Outsourcing’s resurgence.
to requirements, thus improving market
penetration of products.
“Africa is uniquely positioned to bypass the
‘call centre’ age and can rapidly adopt digital
platforms to enable innovative solutions such
as digitised sales and more robust automated
administration,” added Strumpher.
“In South Africa, with insurers having a
significant amount of legacy systems and
processes, Digital Transformation, automation
and outsourcing become more challenging.”
Benefits abound
Just as with any other business process,
outsourcing policy administration does
provide the insurer with several benefits.
“For one, freeing up time and capacity
enable the insurer to focus more on sales,”
added Strumpher.
P
olicy administration is a fundamental
business function for any insurer.
The stakes are high in ensuring
consistent customer service delivery across
the operational value chain; failure could
result in complaints being lodged with the
ombudsman, reputational damage and
ultimately the loss of business. Angelique
Strumpher, Administration Manager at
SilverBridge, examines how outsourcing can
help mitigate this.
“One of the most significant challenges
facing traditional insurers and brokerages
are inefficient processes, outdated
technology and too many manual
touch points which all contribute to high
operating costs,” she said.
This has resulted in Africa looking for best
practice initiatives that leverage technology
and outsourced services to scale according
“In addition, outsourcing delivers
economies of scale so instead of buying
and implementing new technologies to
administrate policies, the outsourced
solution (or service provider) can take care
of it.”
Inevitably, this results in improved customer
service delivery across the business value
chain; with the insurer entering into service
level agreements with the outsourced
provider. Accountability and quality of
service are also taken care of.
“Because the policy administration function
is a mission-critical element for the insurer or
broker, the discussion to outsource must form
part of a strategic discussion,” said Strumpher.
“Depending on what phase of business
the insurer or broker is in, the thought of
outsourcing will either be appealing or not.
The financial position of the company also
plays a big part in determining the need for
Outsourcing the policy
administration function
46
INTELLIGENTCIO
www.intelligentcio.com