October 05, 2012

Benefits of BPM in Insurance Sector

BPM has always played a vital role in the healthcare compliance, insurance sector and more. Use of BPM process for better outcomes in business is increasingly becoming popular. The economic environment has turned out to be more competitive than it was earlier. Insurance companies usually face extreme pressure for running profitable operations. They are responsible for ensuring that the best customer service is being offered along with the need for restricting risk exposure.

In such a scenario, business process management can really do wonders. BPM not only ensures that insurance companies can meet the required objectives but can thrive in an extremely competitive environment. Here are the top five advantages that BPM manages to deliver to both the small-sized as well as the large sized businesses.

Boost in Profitability: BPM ensures that there is a significant reduction in the costs and smartly obliterates the redundant manual effort. Insurance companies, with the help of BPM tools, can streamline and simulate the processes. These efforts effectively translate into higher profitability in the long run too.

Automating underwriting: BPM is widely known for redefining business rules. It further enables the under writers to focus on the knowledge based underwriting aspects. It ensures that the risks always remain within the acceptable limits.

Enhancing productivity: Insurance is also known as the paper intensive sector. BPM suites lead into an elimination of all the paper-based transactions, time consuming data entry processes, manual reconciliation and more. Hence businesses, with the help of BPM tools can ensure enhanced productivity.

Execution and strategy aligned: Process implementations that are currently in line with the business strategy are imperative to the insurance industry success. BPM is rather a framework technology that focuses on the leveraging of the partnership between information technology and business users. This will make the insurers much more responsive to the customer needs as well as the Market trends.

Real time visibility and process control: BPM provides real time dashboards, making regular monitoring of the business performance and tracking activity status every time.

The choice remains with the insurance providers whether they like to incorporate BPM platforms in-house or simply buy them. In-house may demand a higher level of the maturity, development and investment so that a robust solution is created. Buying BPM platforms can prove to be a cheaper, faster and superior solution catering to the needs of the insurance providers.

BPM is a technology that is rising rapidly and it is increasingly becoming popular among the modern business organisations. In the current scenario, business process management is one of the fastest growing software markets offering a wide range of the organisational solutions. BPM is responsible for coordinating every little interaction between the systems, human decisions and business processes.

Improvement of the efficiencies and reduction of the costs is crucial for achieving success in the insurance industry today. BPM is a technology that can make all the difference and ensure that the goals are achieved and challenges are met without any hassles. BPM is not just required for the long term projects and it is a misconception that it is an expensive technology; rather it is a cost-effective solution.

Denis Butcher is a Business Process Management analyst and a writer who shares his knowledge on Process Improvement, Business Process Analysis Training, BPM and more.  He feels that with every organisation, small or large scale, should implement BPM in full fledge. If you want to discuss more about process analysis steps, visit Prime PMG in Brisbane, Australia.

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