Insurance BPO Philippines: How Outsourcing is Changing the Game

BY

Manila Bulletin-Insurance BPO Philippines photo.png

In an ever-evolving insurance landscape marked by changing customer needs, regulatory shifts, and an ongoing quest for cost efficiency, the Philippines has emerged as the world's premier destination for insurance BPO services. By leveraging a highly skilled, English-speaking workforce, an advantageous cost structure, and government support, the Philippine outsourcing sector has positioned itself at the forefront of the insurance industry's transformation. Insurance companies across the globe are increasingly partnering with contact centers to outsource a wide range of front- and back-office services.

According to Ralf Ellspermann, CEO of PITON-Global and renowned expert in insurance BPO, “These services include policy administration, customer support, claims management, underwriting, and regulatory compliance, among others. The decision to outsource these processes allows insurance companies to streamline their operations and focus on their core competencies while tapping into the expertise of the Philippines' talented workforce.” One of the key factors driving the success of the BPO industry in the insurance space is the country's abundant, educated workforce, which is adept at handling complex insurance processes. Furthermore, the nations' lower labor costs compared to Western countries enable insurance companies to achieve significant cost savings without compromising on service quality.

The strong cultural alignment between the Philippines and its global clients, a result of the country's history of Western influence, ensures seamless communication and understanding. Additionally, the local government actively supports the BPO industry by providing tax incentives and investing in infrastructure to create an environment conducive to growth. “The decision to outsource insurance-related business processes to the Philippines not only benefits insurance companies but also has a positive impact on their clients. By streamlining processes and reducing operational expenses, companies can pass on these cost savings to customers in the form of lower premiums and improved service offerings,” says Ellspermann.

Furthermore, the high level of expertise offered by BPOs ensures that clients receive top-notch services across the board. “Two companies that have successfully leveraged the Philippine BPO industry's capabilities are Zurich Insurance Group and Prudential. Switzerland-based Zurich Insurance Group expanded its outsourcing operations to the Philippines, focusing on claims management and customer support. The move resulted in substantial cost savings and improved efficiency in handling customer inquiries. British multinational life insurance and financial services company Prudential also established a shared service center in the country, supporting its global operations in areas such as finance, policy administration, and IT. This strategic move allowed the company to optimize its processes and achieve considerable cost savings,” explains Ellspermann.

Innovative technologies are playing a pivotal role in the BPO industry's ability to enhance operational efficiency, reduce costs, and elevate the customer experience. “The implementation of robotic process automation streamlines mundane, repetitive tasks, enabling human employees to focus on more complex, value-driven activities. Additionally, the integration of artificial intelligence and machine learning technologies facilitates better risk assessment, fraud detection, and personalized policy offerings. Cloud computing services further amplify the industry's capabilities by providing increased flexibility, scalability, and security, empowering insurance companies to adapt to ever-changing business needs,” he adds.

The Philippine outsourcing sector has emerged as a game-changer in the insurance sector, offering win-win solutions for insurance companies and their clients alike. “As the industry continues to innovate and adopt cutting-edge technologies, the country is set to strengthen its position as the world's leading insurance BPO hub, reshaping the future of the insurance industry,” concurs Ellspermann.