There is not an iota of doubt that insurance wholesalers play a very crucial role in the growth of the insurance industry. Indeed they are generally considered to be the foundation and one of the strongest pillars of this sector. To understand this better, it is necessary to understand in detail what makes them so important and what differentiates them from retailers that are the front-line face of this business. Retailers have a one to one relationship with existing and potential policy holders but wholesalers offer deals in bulk.
Hence, if any high or exponential growth has to take place a major contribution to it is brought in by the wholesalers. It is therefore only natural that wholesalers have a right to demand and get the best services from insurance companies.
What is expected by wholesalers as support for their efforts is streamlined and optimized insurance back office services that will make their work that much easier and enable them meet and exceed commitments made to retailers and other players in this field. It will help them establish credibility with clients thereby pushing up their market share.
All this can only be possible when insurance companies decide to outsource their back office work to specialized agencies that have long years of experience in offering high quality assistance to insurance companies. The concept really took roots in the mid-1990 when businesses hit hard by recession and strict statutory monitoring by Governments and regulatory bodies were looking for ways and means to cut costs while retaining their competitive edge. Non-core and back office services were parceled out to companies and this saw a spurt in profitability primarily due to differentials in wage and cost of services between countries.
As a wholesaler, what then will you look for to ensure successful insurance back office support? Here a few tips to help you on your way –
Forms Processing –
You will have to deal with numerous forms in the course of your business ranging from application forms and claims forms to medical forms and other reports. Processing them in-house will be a tedious and time consuming affair not to speak of huge investments in hardware and software. Once this is outsourced by insurance companies, your output too is increased due to the speeding up of all processes and you will by default be able to meet all your targets and objectives.
Data Processing –
Similar is the case with data processing. Insurance wholesalers have to deal with customers in bulk and hence should have quick and easy access to all data pertaining to them if they are to offer a high level of customer service. This is only possible if data entry processing is outsourced to agencies that have the required systems in place to facilitate fast retrieval of any client information as required by you.
Claims Processing –
There cannot be any compromise on this issue since your integrity is at stake here. People trust you and agree to take out insurance policies on the implicit faith that in the event of any unfortunate and untoward incident, the claims of their nominees will be settled without any problems. It is therefore prudent to make sure that the insurance companies you deal with have outsourced this aspect to companies that can help settle claims without delay, regardless of the duration that the policy has been active or the complexities of individual cases.
Commission Processing –
While it is true that your business is customer centric, there is also the question of your remuneration that has to be addressed. Being a wholesaler, you'll be dealing with a whole array of schemes, each having a different quantum of commission payable. It requires huge and accurate processing by sophisticated systems to calculate and arrive at commission payable within the stipulated time frames – weekly, fortnightly, monthly. This is a vital cog in insurance back office support which almost all successful insurance companies outsource so that you get your due rewards on time.
These are some of the tips which as a wholesaler you'll do well to follow if you have to maximize your operational strategies and efficiency. While retailers have the leeway of dealing with clients and bringing in business at a personalized individual level, you have the onerous responsibility of simultaneously catering to multiple policy holders. Any slip-up will have disastrous consequences on your image and reputation, all the more reason why you need the full backing of optimized insurance back office support.