4 Responses to “Video: Insurance BPO Report – Key Findings | Sherpas in Blue Shirts”

  1. R. Mahesh says:

    Rishabh, great video! What are some risks insurance companies might face in outsourcing their core business processes?

  2. Rishabh says:

    Outsourcing a core business proposition is always a proposition that is approached with caution by insurers. Some of the risks inherent in doing this are:

    1. Operational risk: Ensuring that service providers have the same (or higher) levels of risk awareness, risk supervision, and risk management processes in place that insurers themselves do. Insurers need to make sure that their outsourcing relationship protects their liabilities exposure.

    2. Failing to adhere to changing compliance and regulatory requirements: Insurers need to make sure that they confirm to regulations like the upcoming Solvency II guidelines, Material Outsourcing guidelines, TPA licensing regulations, and data privacy regulations. This is done well by signing flexible contracts that allow for modifications to accommodate changing regulations, and having robust risk management and service continuity processes

    As detailed more comprehensively in the Everest Group Insurance BPO report, we recommend that insurers do a detailed service provider assessment before deciding to outsource core processes to them, including assessing the risk management framework, certifications, previous experience, and domain expertise of the service providers being considered.

  3. ajith asok says:

    Hi Rishabh,
    I am a student from IIML, doing a research on the BPO market..If possible. could you please tell me what could be the barriers to enter Insurance BPO….

  4. Hi Ajith,

    Some of the barriers are risk management, operational challenges, and ability to compete against captives.

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