Insurance companies in Australia are forming partnerships with business process outsourcing providers as they struggle to innovate in the face of mounting competition and rising customer expectations.
In particular, they are seeking new ways to design and deploy a new generation of digital products, according to a report by technology research and advisory firm Information Services Group (ISG).
The 2021 ISG Provider Lens Insurance BPO Services Report has found that insurers in Australia are looking to improve customer experiences, reduce costs and better leverage data for competitive advantage. The COVID-19 pandemic has prompted them to empower agents with tools and technologies to support the best possible customer experience.
“Australian insurance carriers are being challenged to grow their businesses, respond to higher customer expectations, fend off intense competition from Insurtechs and other start-ups, and adapt to challenges created by the pandemic,” said Scott Bertsch, partner and regional leader, ISG Asia Pacific. “Many are turning to business process outsourcing service providers to help them meet these urgent priorities.”
He said BPO service providers are helping carriers offer modern digital experiences to customers and agents at all touchpoints, including applications, onboarding and claims. In many cases, insurance carriers are strapped to legacy technology systems, including mainframes, large database servers and expensive data centers that limit their ability to offer innovative new tools to customers and agents. In contrast, BPO providers free up carriers’ internal resources so they can focus on more strategic initiatives instead of trying to extract new functionality from aging, unwieldy and costly systems, the report says. BPO providers offer expertise in essential modern technologies like the cloud, artificial intelligence, robotic process automation, the IoT and chatbots.