OUTSOURCING SPECIAL – BROKER BACK OFFICE
Prospering through partnership
Outsourcing back office functions can prove extremely valuable for a commercial
track record will help you stand
up to scrutiny.
broking business advises Kate Roy, business development director of Capita
Outsourcing is a proven tool
Insurance Services
in improving business
performance and transforming
customer services, what is
I
f 2009 has taught us anything,
to other sectors. However, we
it is that efficiencies is a word
have seen this change over the
important is that the broker
that cannot be taken lightly
past few years especially during
determines the servicing
and customer loyalty is invaluable
the downturn where businesses in
requirements from the outset by
as it will inevitably help brokers
all sectors are closely scrutinising
communicating and working
through the most difficult of
the efficiency of their business
closely together. Working with an
times.
processes.
outsourcer is an unique
For a number of years
The brokers priority is to
experience because rather than
outsourcing certain disciplines
focus on its core competencies
establishing a relationship of
has long been championed as a
whatever the climate and it is
contractor and provider, you build
method of improving both
becoming apparent that these
a partnership and the outsourcer
efficiencies and customer
competencies, which include
can even become an extension of
relations but how true is this in
client management and realising Kate Roy
the provider itself.
the broking world?
efficiencies, are the key drivers
Business Development Director This year, we have noticed
Historically, commercial
behind considering outsourcing.
Capita Insurance Services
commercial brokers actively
brokers have been more reluctant
These drivers have existed
business and questioning the
seeking information and advice
to embrace outsourcing compared
for a number of years but have
benefits and actual cost savings
on outsourcing their back-office
recently become much more
also add to this reluctance. From
functions. Two years ago, this
acute with higher customer
experience, we understand
was unheard of. Looking forward
expectations at the lowest
brokers’ concerns, however we
to the end of the year and
possible cost.
have worked with two leading
venturing into 2010, we expect
What outsourcing allows
commercial brokers over the last
this market to mature
brokers to do is focus on what
couple of years who have realised
considerably.
they do best – disseminating
that outsourcing their back-office
We have not noticed
market knowledge through an
hasn’t disrupted their services
anything so far to suggest that
advisory role and managing the
and customers havent been let
hardening of insurance rates is
customer lifecycle. The broking
down and decided to leave.
likely in the short term so to
environment isn’t one of
maintain market share, brokers
manufacturing or production, so
need to demonstrate a high and
working in partnership, the
consistent level of service at a
outsourcer takes on this role to A
n established and
reputable outsourcer can
provide many benefits to
competitive price.
better understand processes and commercial brokers including the
As far as the recession is
technological needs and breadth and depth of knowledge
concerned, we are still in the
implement the latest and track record necessary to
thick of it and we will all be
developments. execute seamless
dealing with the fall-out for a
With their customers so transformational change.
long time to come. While the
crucially important to them, it is Rather than hinder,
current climate may mean some
understandable that brokers are outsourcing helps protect the
commercial brokers are still
wary about handing over certain customer journey and ultimately
hesitant to invest in smarter
operations to an external provider will enhance overall service. True
back-office systems and
and this can be difficult at the partnership between the broker
partnering with an outsourcer, I
beginning. and outsourcer provides greater
believe they and their customers
Fear of disruption to the transparency and working with a
will benefit by doing so in the
day-to-day running of the credible partner with a reputable
long run.
Insurance Brokers’ Monthly 15
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