A report from global analyst firm Ovum stated that executives of Europeís life insurance sector are considering business process outsourcing (BPO) to help alleviate financial pressure as core markets are crumbling and the Eurozone becoming more unstable.
Apart from that, the report denotes that European life insurers are planning to utilize outsourcing to improve strategies and reorganize the entire life insurance platform of the country within three years.
Some of the processes that are outsourced by European life insurance companies are basic back office processes such as premium billing, modification of client information, data entry, and recording. The complex ones usually involve the entire process of life insurance activity procedure.
According to Charles Juniper, Ovumís Senior Insurance Analyst, said even if BPO will not be able to solve all problems that European countries are facing, it is crucial when it comes to reducing costs and can help improve business operations, which is why life insurers in Europe should include it in development strategies. He added that the prerogative of each life insurer in using BPO will be based on the situation of each European country.