Remember the old days when you had to give in endless hours to manually go through stacks of insurance documents, to double-check and ensure the accuracy of every detail?

Well, if still, those days are not gone for you, you are missing out on some important insurance policy checking services that can make your job easier and better.

Insurance policy checking has left its title of being called tedious and time-consuming. It’s an essential step for every agent to ensure that their clients are getting exactly what they signed up for. When done correctly, it helps in catching discrepancies, if any, verifying coverages, and ensuring compliance.

With the onset of many services, the checking process has become more streamlined. If you wonder what helps other insurance agencies build relationships and grow business, then this is your answer.

While many have grasped the concept and are ensuring every policy they handle is thoroughly vetted and no error emerges as a surprise, many still continue to struggle.

To say policy-checking outsourcing is a boon will be fair. But before telling you why, let’s understand:

The Hidden Struggle: Why Insurance Agents Find Policy Checking an Uphill Task

Insurance policy check is a part and parcel of the everyday life of insurance agents. But it is still an uphill struggle for many that goes beyond just skimming through fine prints. There are numerous reasons that we have explained below that make this straightforward process a daunting challenge. Because of this, it often leads to mistakes that could cause serious repercussions for both parties.

Let’s shed light on reasons that make it difficult for MGAs to check insurance policies efficiently:

1. High Volume of Policies: The increased awareness about the need to have a policy and its benefits has left insurance agents to typically handle a large number of policies on a daily basis. This makes it challenging for them to review each thoroughly. Especially when the deadlines are tight, the large volume can result in oversights and errors.  
   
2. Complexity of Policies: Navigation through various terms, conditions, and coverage details isn’t an easy task. While agents must try to carefully review every aspect to ensure accuracy, it is only fair to acknowledge that it can slow down the process, resulting in inefficiency.  
   
3. Keeping Up with Regulatory Changes: Frequent changes in insurance regulations and policies are in the control of no insurance agent. Regardless, staying up-to-date is essential for accurate checking. Doing so requires continuous learning and adaptation, which is time-consuming and can be challenging along with multiple other responsibilities at hand.  
   
4. Manual Processes: Reliability on manual processes is still there when it comes to tasks such as document reviewing and cross-referencing information while checking policies. This often results in more time dedication and more errors, making it difficult to achieve efficiency and accuracy.  
   
5. Lack of Specialized Tools:  
   DID YOU KNOW? A report showed that nearly 70% of insurance agencies still rely on manual processes for policy checking.
   The lack of access to advanced tools and softwares has diminished over time for many. Your struggle with efficiency to verify policy details can be achieved by leveraging advanced tools and softwares that are especially designed to streamline operations. The results in delays and potential errors have been a persistent problem with manual work which can be eliminated if you take a step to adopt cutting-edge technology to achieve greater accuracy.
6. Balancing Customer Service and Administrative Tasks: If you wear multiple hats at the same time, you can relate to the problem. Often juggling with many roles, like insurance policy checking and administration services, can make it difficult for agents to balance each task well. This then causes inefficiencies.

Now that we know the hindrances agents face when it comes to efficient checking of policies, there are also many-

Common Mistakes Insurance Agents Make During Policy Reviews

There are common mistakes that insurance agents might often make while reviewing their insurance policies, but they don’t have to become a part of their lives. Here, we have not just highlighted the problem but also the prevention that can help them increase efficiency and accuracy. Let’s have a look-

1. Overlooking Policy Endorsements

• Mistake: Multiple changes or handling of multiple policies at a time can sometimes make agents miss key policy endorsements. This overlooking of significant changes that can alter coverage and lead to gaps in protection or unintended exposures.

2. Failing to Update Policies with Client Changes

• Mistake: From mere negligence on the agent’s part or because of multiple jobs at hand, it is possible that an update of the client’s policy according to the changed circumstances might not happen, leading to inadequate coverage. These changes can be either the purchase of a new property or a shift in business.

3. Not Understanding Policy Language

• Mistake: Sometimes the complexity can cause misunderstandings about what all the policy covers. This can lead to miscommunication and incorrect advice.

4. Inconsistent Documentation

• Mistake: Poor documentation can lead to disputes or confusion during claim settlement. Also, incomplete records can cause delays or denials.

5. Relying Solely on Internal Resources

• Mistake: Relying on limited in-house resources for policy reviews can cause oversights during peak periods or while handling complex cases.

Now that we know why checking the policies can be a tough task and some mistakes that can happen during the process, we will give you the biggest advice: Outsource insurance policy checking services.

Why?

Here’s the breakdown of the key contributions that outsourcing partners can make-

1. Expertise and Accuracy:

• Specialized knowledge: Outsourcing partners are known for their team of professionals who have deep expertise in insurance policy management.

• Compliance Adherence: You know how complex insurance regulations are and how they are constantly evolving. Outsourcing partners ensure that all policies timely and promptly adhere to present regulations so that the risk of non-compliance penalties is minimized, saving agencies millions annually.

2. Operational Efficiency:

• Time Saving: Time and again studies have shown how companies who avail help in administrative tasks like policy checking services via outsourcing can reduce the time spent on them by 40%. This allows the in-house team to focus on core business functions.
  
• Scalability: Outsourcing partners come as a blessing at the end of a fiscal year or during renewal seasons with their ability to scale operations quickly without compromising on quality.

To know more about how FBSPL can be the right fit for you, visit- https://fbspl.com/services/insurance-new-business-servicing 

3. Cost Savings:

• Reduced Overhead: Outsourcing may look like an additional cost to you, but you will not think so after reading this stat:

• Economies of Scale: When you outsource multiple clients to the firm, which allows them to spread costs and offer their services to you at competitive rates.

4. Advanced Technology Integration:

• Automation and AI: In a recent study by Capgemini, companies that leverage outsourcing partners who are equipped with AI-driven tools see a reduction of 60% in errors during the checking process.

• Data Security: Investment in cybersecurity is a top priority of outsourcing partners that handle vast amounts of sensitive insurance industry data. Why? Simply to protect the data against breaches, which could otherwise cause financial and reputational damage.

5. Risk Management:

• Error Reduction: Did you know that errors in policy documentation can lead to claims disputes costing insurers approx. $15,000/dispute? Shocking, isn’t it? You can save yourself from the financial burden by outsourcing expertise and technology that can reduce error rates by 50%.  
  
• Quality Assurance: Quality assurance processes employed by outsourcing firms like Cognizant include multiple layers of checks and balances, which have been shown to reduce errors in policy documents by 70%, ensuring that every policy is accurate and complete.

6. Enhanced Customer Experience:

• Consistency in Service: If you are struggling with accurate and timely policy insurance because of understaffing or workload, outsourcing is the right course of action. By doing so, there is a possibility of seeing an increase in customer satisfaction of 20%.

Conclusion:

Outsourcing at a glance can look like an additional expense, but in the insurance world, time, customer satisfaction, efficiency, and accuracy are money. You can invest in a reputed outsourcing partner and achieve it all to continuously grow and expand. For instance, FBSPL can provide all-in-one expertise with tailored-made scalable solutions with a quick turnaround time.

For more information, check out- https://fbspl.com/services/insurance-new-business-servicing

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