Insurance BPO vs. In-House Processing

A call processing center is one of the most essential parts of every insurance company. Thanks to the customer support available by phone, insurers can effectively communicate with clients and provide them with the necessary customer support. Some insurance companies decide on outsourced call centers, while others rely on in-house call processing. But which is better, insurance BPO vs in-house processing?

Both insurance BPO and in-house processing have their benefits and drawbacks. In-house processing is managed in-house, or, in other words, is owned and operated by the company and in-house employees. In contrast, BPO processing is managed by a third-party operator outside the insurance company, usually a business process outsourcing company, such as CLICKVISION BPO.

That’s why this article will spotlight the pros and cons of insurance BPO and in-house processing so it can help you determine which method of work suits your business.

Insurance BPO vs. In-House Processing

Pros of In-house Processing

As mentioned, in-house processing happens on the insurance company’s premises and is managed by the internal staff. 

This traditional approach to call processing has numerous advantages, which can boost the insurance company’s reputation and reliability when performed correctly. 

Direct management and control

When an insurance company decides on in-house processing, the management and control of the call center remain within your company. Insurers have total authority and insight over the call processing activity, quality of customer support, and various communication and interaction methods with clients.

With the call center activities happening inside the company, the call handling procedures can be arranged by separating different call types to different agents according to their expertise and strengths. 

When the company’s management decides who handles which type of calls, the chances of achieving ideal customer support grow and improve with each task. 

Immediate responsiveness

Internal call processing employees can competently understand the issues and inquiries of the clients because they have direct contact and support from the management. This makes them more responsive and suited to customers and better at resolving problems and questions.

Immediate responsiveness includes scheduling various calls at certain times, giving precise information, and attending to unique customer services. 

By knowing the details about the company’s products and offerings, the internal staff is more prompt to provide suitable answers and recommendations without leaving clients on hold.

Moreover, when the call center staff works in-house, they are aware of the company’s current policy trends and changes. Hence, they can notify the clients and share the information quickly and first-hand.

Brand awareness

Being an expert in the field and having an excellent understanding of the company’s products and insurance services adds a personal touch and personalization to in-house call processing.

The agents in an in-house processing center are highly aware and knowledgeable of the business’s mission and undertakings. They know the insurance company’s standards, processes, and products. That’s why they are the perfect brand ambassadors who increase brand awareness. 

Focusing only on the company’s products and duties is essential in promoting exceptional customer service and support. 

When the company’s values are communicated through the agents and transferred to the clients, the general interest in the company’s services increases, and the attention is put directly on the brand.

Information protection

When the business deals remain between the company’s walls, the chances of leakage of secure information are minimal. In-house call agents can protect the business’ confidentiality and prevent various data exposure.

Many insurance companies decide on in-house processing because of information security. Working with in-house representatives can provide additional confidentiality assurance compared to outsourcing ones.

Cons of In-house Processing

Of course, working with in-house call center agents has its drawbacks, too. 

To compare BPO vs. in-house processing, one must first understand the main disadvantages of working with in-house call agents.

High costs

The initial cost of building and setting up an in-house call center infrastructure is quite expensive. Setting up includes properly chosen facilities, labor costs, staff training, and investing in the proper call center technology. 

Buying computers, phone lines, general call processing software, and all the necessary tools are pretty costly, especially nowadays when technology is far more advanced than it was.

Scalability challenges 

Several reasons, such as seasonal pick, business growth, resource capacity, and regular call volume, among others, can influence call center scalability. 

Usually, in-house teams are plodding to scale and require a lot of work compared to BPO teams, and that’s one of the main disadvantages of in-house call centers.

Managing everything internally 

Managing all aspects of a call center can be a very demanding task and sometimes pose as a burden. First, one must have experience managing an in-house processing center and possess excellent skills. Plus, the control of the call center can become overwhelming and time-consuming, distracting the insurers from their primary tasks.

When everything happens internally, there’s a chance that the company’s core operations get overlooked because of the demanding attention put on the call center. That can affect the brand and the business’s mission and result in a low reputation and loss of clients.

Source: freepik.com

Pros of Outsourced Insurance BPO

Hiring a third-party company to manage and handle the call services of an insurance company has become highly sought. That’s why our mission at CLICKVISION BPO is to provide an outstanding service to insurance companies, which would help companies to focus on their business growth while we handle the outsourcing part.

Now that the pros of in-house processing are reviewed, it’s time to see why outsourced insurance BPO is in demand and what an outsourcing partner such as CLICKVISION BPO can do to increase the efficiency of insurance call processing.

Cost savings

Outsourcing call agents from a third-party company is far more inexpensive than in-house processing. 

If in-house call centers require investing in technology, salaries, training, and facilities, among other things, BPO processing requires investing in only as much agents’ engagement as the company needs.

Put simply, a partnership with an outsourcing company such as CLICKVISION BPO can offload the cost of resources, enable access to regional markets, share their technological equipped offices, and take proper maintenance of the call center staff.

Trained and specialized staff

It’s expected that outsourced call agents have excellent customer service training and specialize in providing the best call-processing services. They work for different brands and know how to handle diverse clients’ profiles. 

Moreover, outsourcing companies offer a huge variety of talents. One of the many talents outsourcing companies offer is that their employees are fluent in many languages, which can offer efficient services and expertise in many areas.

Therefore, any insurance company that is looking for trained and experienced call processing staff from whom it can benefit and boost the business further can find excellent outsourcing call processing agents at CLICKVISION BPO. 

Management and productivity 

Managing the in-house call center staff can be a demanding task. That’s not the case with the outsourced agents from our company because the insurance company won’t have to control and monitor the call center’s operations. An outsourcing manager at ClickVision does all of the hiring and management of outsourcing agents. 

Hence, all of the time and experience that would be invested in call center functioning can be redirected into handling the primary operations of the business and dealing with crucial tasks. This can increase the company’s productivity and strengthen the brand.

Support at all times

Many in-house insurance call centers can’t provide their clients with non-stop customer service. When the company needs around-the-clock support, the answer is hiring the services of our outsourced BPO insurance company. 

Outsourced agents can work at all times, ensuring they handle the call volume every hour of the day. They can answer when the market demands increase so the insurance company can prosper.

Cons of Outsourced Insurance BPO

As with everything else, outsourced insurance BPO has its cons. It’s vital to know them when contrasting BPO vs. in-house processing.

Data security

The insurance company risks data leakage when hiring outsourcing agents because it must share vital information and secure data with a third-party company. 

With outsourcing vendors, there’s always a chance that the secure data will be compromised and even shared with competitors. That’s why data-sensitive insurance companies never decide on outsourced insurance BPO. 

Communication gaps

Outsourced agents might not communicate in the proper language with the company’s clients. That can influence the overall quality of customer services, among other things, and create communication and cultural gaps between the insurance company and the clients.

A communication barrier is a no-go for a call center because clients might feel disregarded and disrespected and decide to look for insurance services and products elsewhere.

Additionally, outsourcing agents who aren’t familiar with the insurance company’s products in detail can misinform the customers, creating inadequate brand awareness. 

Source: freepik.com / Photo Contributor: The Yuri Arcurs Collection

Conclusion

If a company isn’t afraid of high costs, wants total control and in-house coordination, and needs to secure its information, then in-house processing might be the answer. On the other hand, a company that receives high-volume calls 24/7, wants to handle scalability exceptionally and doesn’t want to control everything, including data security, might find BPO a more satisfactory option. 

However, selecting between BPO vs. in-house processing mustn’t be rushed and unplanned. Determining the right solution for the insurance company is critical so the business can grow and flourish.

Now that the pros and cons of both BPO and in-house processing are uncovered and inspected, it may become more straightforward to pick an option that aligns with the company’s goals and nature.