Spurred by rising client expectations, insurance carriers in Australia are rushing to design and deploy innovative digital products, and they are turning to specialized business process outsourcing providers for help, according to a new report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Insurance BPO Services Report in the country looking to improve client experience, reduce costs and better leverage data for competitive advantage.
The pandemic has created urgency for insurers
The prevalent global COVID-19 pandemic, specifically, has prompted carriers to empower agents with tools and technologies to support the best possible customer experience.
“Australian insurance carriers are challenged to grow, respond to higher client expectations, fend off intense competition from Insurtechs and other startups, and adapt to challenges created by the pandemic,” said Scott Bertsch, partner and regional leader, ISG APAC.
“Many are turning to BPO service providers to help them meet these urgent priorities.”
BPO service providers are helping carriers offer modern digital experiences to customers and agents at all touchpoints, including applications, onboarding and claims, the report says.
Insurers are strapped to legacy tech systems, like mainframes, large database servers and costly data centers that limit their ability to offer innovative new tools to clients and agents.
BPO providers free carriers’ internal resources so they can focus on more strategic initiatives instead of trying to extract new functionality from aging, unwieldy and costly systems, the report says. BPO providers offer deep expertise in essential modern technologies like the cloud, artificial intelligence, robotic process automation, the IoT and chatbots.
Customer experience is vital for insurers
The report suggests optimizing client experience is vital for insurers to grow their business. Today’s tech-savvy clients expect all interactions with carriers to be frictionless, efficient and mobile, and BPO providers offer a variety of tech to help streamline client-facing processes.
In addition, BPO providers are enabling insurers to grow by helping them launch products faster, the report says. Providers with analytics and data management expertise can use technologies like AI and machine learning to help insurers derive new insights from the vast data assets. Advanced analytics capabilities can give insurers a competitive edge.
Finally, BPO providers can help insurers improve operational efficiency through services such as policy administration outsourcing. Many BPO providers also offer enhanced cybersecurity tools that can help insurance carriers protect their clients’ sensitive personal data.
The 2021 ISG Provider Lens™ Insurance BPO Services Report for Australia evaluates the capabilities of 14 providers across two quadrants: Life and Retirement Services and Property and Casualty Services. The report names EXL as a Leader in both quadrants. Accenture, DXC Technology, Genpact and WNS are named Leaders in one quadrant.