Role of BPM in Insurance Market
Posted by ICCS BPO on Friday 28th of May 2021
BPM or Business process management ensures that a management process is in place for setting goals and policies, practices, procedures, organisational structure, roles to ensure enterprise goals will be achieved.
BPM can help monitor & optimize processes for Insurance companies, agencies & carriers while maintaining their market share & profitability.
BPM software helps companies to identify and define the various steps required to complete each business task. It then amalgamates these steps onto existing business processes. Streamlining the processes wherever possible to create a more efficient and robust one.
Let’s look at the benefits of BPM:
- Helps in streamlining the business current processes.
- Ensures creation of business processes spanning various departments across varied locations
- Helps in creating and strengthening the business processes
- Helps in integration into the existing business processes
- Enhances productivity and efficiency
- Helps in increasing new businesses
In short BPM system helps in designing, execution, maintenance of business activities. This can be done across locations and departments.
BPM can actually be a big support when it comes to optimization in various BPO management. As it helps in optimizing the business processes for greater efficiency.
BPM role in insurance market:
BPM is set to become major player in insurance market. BPM market is expected to grow at a very fast pace and is set to become a major force in insurance worldwide and in India as well. More and more insurance companies have opted for BPM.
Standalone implementations of BPM has numerous advantages which can’t be ignored by the insurance companies. While most of the challenges faced by insurance companies are similar to one faced by any business but few like managing risks remain attributed mainly to this sector.
BPM is used in various insurance arenas like claims, underwriting etc.
In extremely competitive market like insurance differentiation through innovative technologies like BPM is very crucial and profitable way to enhance productivity and efficiency in insurance processes across locations and departments. By implementing BPM insurance numerous qualitative and quantitate advantages can be achieved.
In nutshell below are the profits of BPM in insurance sector:
- Helps in increasing market share.
- Helps in increasing profitability.
- Improves and optimizes the insurance process without compromising on the quality aspects.
BPM can be applied on claims entries, claims follow up’s claims status updates, claims close outs and reporting the data. Currently in India BPM is being incorporated in claims handling, policy servicing, accounting, claims renewals, quality assurance etc.
In today’s competitive business environment role of BPM has been in frontline more than ever. To gain an edge over the competition and ensuring high efficiency and productivity along with innovative techniques invariably involves BPM.
All the insurance companies are vying for being the top-notch service provider this goes without saying -How BPM is supporting this is a study in point. While seeking to increase effectiveness and productivity of management they invariably face challenges in the form of providing faster responses , reducing operational costs ,ensuring satisfying solutions to the customers, retaining customers , quick responses to regulatory issues .As is evident insurance sector is also one sector which grapples with high volumes of data , excessive manual processes, higher error rates in the processes .Various surveys conducted worldwide has put one important point in focus that BPM application has had a positive impact on the insurance sector.
In a nutshell BPM in insurance sector can have tremendous potential as its implementation can prove to be an effective way to process claims and simultaneously manage risk. BPM can significantly reduce overall claims processing time.
BPM has definitely helped companies in India as well as abroad maintain a competitive edge by
Enhancing and optimizing their business processes without having to compromise on efficiency, quality and the response time .BPM is definitely set to become a force to reckon with in the insurance sector .Surveys worldwide have indicated that BPM is currently the most readily implemented or in the to do list plan .BPM enables companies in analysing numerous benefits related to operational efficiency as well as business innovation.
Many firms worldwide have concluded that they almost received 100% return on their BPM implementation
BPM has also helped companies in maintaining consistency in the process as well. The manifold benefits and BPM emerging as a force to reckon with has prompted many Indian insurance BPO’s to opt for BPM.
While BPM is definitely seems very promising and emerging as a toast of the town kind of procedure still it has also few shortcomings which need to be catered to. BPM implementations require coordinated and committed team for smooth implementations.
BPM are also viewed as that extra edge to the highly competitive market scenario as it helps in getting a company to stay ahead with its clear competitive edge that it provides to the companies.
In the intensely competitive insurance market, differentiation through innovative technologies like BPM is an important and effective way to maintain or increase market share and profitability in the sector. Insurers can achieve numerous qualitative advantages by opting for it.
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