The insurance outsourcing industry is expected to grow by 7.8% annually through 2022, according to a report from The Boston Consulting Group (BCG). The growth of this industry is due to the continuing trend of clients moving their insurance operations off-premises to third-party providers. As this trend continues, the insurance outsourcing industry will experience greater competition and greater pressure to adapt to changes in customer expectations and technology.
Here are four trends that will continue to drive the insurance outsourcing industry in the next five years:
- Greater Demand for High-Quality Services: As consumers seek more transparency into the services they receive from their insurance companies, they will be more likely to seek out high-quality service providers with proven track records. This will create opportunities for insurers to partner with third-party providers that are able to provide high-quality services that meet their clients’ needs.
- Increased Focus on Data Analytics: Over the next five years, insurance providers will continue to rely on data and analytics to better understand their customers and how to provide them with the best possible services. This trend will create a demand for third-party providers that have advanced data analytics capabilities, as well as relationships with major technology vendors.
- Innovative Use of Technology: As the technology landscape continues to shift, new types of products and services will emerge to help provide greater value to customers. These technologies will be adopted by insurance carriers and independent brokers alike to better serve their customers. Insurers will rely on third-party providers to help them identify and adopt new technologies.
- Certified Back-Office Advisors: Certified advisors handling operational tasks for insurance companies can greatly reduce costs and improve efficiency. By Certifying a Back-Office Advisor, an organization can be assured that the advisor has met certain industry standards and possesses the necessary skills and experience to perform their work effectively. Certified advisors demonstrate an understanding of the industry and provide high-quality service to clients while ensuring that they comply with all applicable laws and regulations.
In conclusion; Insurance outsourcing companies are already well-positioned to take advantage of these trends and continue to thrive in the industry. Disruption has always been a key driver of growth and innovation in the insurance sector, and today is no different. Insurance companies that fail to keep up with new technologies and business practices could find themselves left behind by their competitors. For this reason, many insurance providers have turned to outsourced partnerships as a way to increase efficiency and gain a competitive advantage in the marketplace.
