BPO or Business Process Outsourcing is a universal term used for the outsourcing of specific functions to a third-party service provider or a third party administrator to replace in-house services with labor from an outside firm. BPO that is contracted outside a company’s country is called offshore outsourcing. BPO that is contracted to a company’s neighboring country is called near shore outsourcing.
Typically a BPO firm is categorized into back-office outsourcing services with expertise in the functions that are outsourced. In the past, BPO was often done for specific functions, such as human resource or IT. Now it includes a wider spectrum of services, often with a turn-key approach. Some of the more common BPO services include but are not limited to: underwriting, claims adjudication, premium and commission processing, human resources, finance and accounting, customer services, overflow capacity and other areas that may not be core to a company.
In addition, companies use BPO services to get into a new market quickly with better cost certainty. A BPO provider can perform these processes more quickly, accurately, efficiently, and for less cost because of their economy of scale.
Some Advantages include:
• Reduction of costs – administrative costs are reduced through the BPO provider’s technologies and process improvements, resulting in greater efficiencies – economy of scale.
• Outside expertise – companies do not have to spend their resources to recruit and train personnel; the BPO provider has knowledgeable experts who deliver these services.
• Scalability – BPO providers offer flexible and scalable services to meet changing needs and requirements. There typically is a lower fixed cost when a company implements a new service, introduces a new product, or expands.
• Increase client revenues – By outsourcing non-core processes, companies are free to focus on their core functions; such as sales and marketing, new product development and diversification.
BPO for the insurance industry is typically referred to as “TPA” services for Third Party Administrator or Third Party Administration. TPA’s are similar in that insurance companies outsource services to an outside service provider for a variety of reasons, mostly to reduce cost and gain expertise, plus enter new markets with a proven partner. The insurance industry is highly regulated therefore, having a TPA that is knowledgeable in the products and compliance and regulatory aspects of the business is critical.
IAS is a TPA for life, health and annuity products and helps insurance companies improve their business processes by offering turn-key solutions tailored to fit their specific requirements. IAS offers an arrays of services such as but not limited to: new business underwriting, policy administration / policyholder services, premium billing and collections, call center support, benefits review, claims adjudication, regulatory and compliance, commission processing, conversion of closed or orphan Blocks of business, plus Insurance and Reinsurance reporting services. By utilizing IAS for BPO or TPA services, clients can dramatically improve their operations and performance and lower their cost, compete more effectively and drive their top-line growth.
For more information, please contact IAS at 407-472-3905 or visit us on the web at www.IASadmin.com.