An introduction to transforming processes and driving efficiencies in the Insurance industry with Business Process Management (BPM).
As markets rebound from instability, including a years-long pandemic and the uncertainty of an ongoing war, insurance organizations are reinventing their businesses. In their day-to-day operations, insurers are dealing with antiquated data, legacy technology systems, and manual error-ridden processes that are driving up costs. Insurance companies and their leaders are realizing the need for more efficiency, productivity, and effectiveness to meet the demands of the ever-changing market.
To effectively modernize operations, many companies have begun implementing Business Process Management (BPM) strategies, digital transformation, and technology upgrades to curb the upheaval. These strategies are enabling insurance providers specifically to retain customers, respond quickly to regulatory changes, and reduce operating costs.
Optimizing Operations with BPM
Business Project Management is a strategy that enables organizations to develop, manage, and enhance fundamental operational processes. BPM involves analyzing each function and how it fits into the overarching organization, including fine-tuning each approach over time for the most significant utilization.
With the implementation of BPM, insurers can successfully automate claims disputes, the tedious underwriting process, customer service efficiency and effectiveness, claims settlement processes, and price quote methods.
By adopting BPM, insurance companies can achieve operational and transactional excellence
- Reduction in claims or policy processing times
- Improved quality and reduced human errors by more than 75%
- Automated regulatory compliance, risk control, and audit records, improving overall visibility for leadership
- Increased cost savings by optimizing business practices
- Improved customer satisfaction by 20%
By adopting BPM, insurance companies can achieve operational and transactional excellence. The methodology allows insurers to align their corporate objectives while designing, implementing, and improving the functionality of products to serve their customers. With their increased efficiency, effectiveness, and productivity, insurers will better respond to the rapidly changing business models created through digital transformation and additional global challenges.
Getting Started with Your BPM Implementation
Starting a Business Process Management (BPM) initiative within an insurance company can be a complex process involving various stakeholders and technology requirements. Key aspects that an insurance company may need to consider when implementing BPM methodologies include:
- Define the scope and objectives. First, identify the business processes that need to be managed and the target objectives of the BPM initiative. This involves a thorough assessment of current processes, identifying pain points, and defining the desired outcomes.
- Identify key stakeholders. A BPM implementation may impact senior management, department heads, business analysts, or IT professionals. Determine the key players specific to your business model, and ensure they are involved throughout the project.
- Create a cross-functional team. Develop a cross-functional team inclusive of members across the organization to collaborate and lead the project. This team will be responsible for process design, validation and testing, and implementation.
- Technology needs. Identify the technology requirements of your BPM initiative based on the project’s scope and objectives. These technical requirements may involve process modeling and automation software, workflow management systems, and analytics tools.
- Process documentation. Once the scope and objectives are defined, the cross-functional team should work together to document current processes, map out new procedures, and create process models to improve efficiency.
- Implementation. Roll out the new BPM methods in a phased manner, conducting regular testing and monitoring results for agile improvement along the way.
Although they may be experiencing market instability or culture shifts, insurance companies can control their process management and service delivery. With the right planning and execution, a BPM initiative can improve efficiency, reduce costs, and enhance customer satisfaction.