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The Ultimate Guide to Insurance Business Process Outsourcing [2025 Updated]
Amir Prodensky
CEO
Oct 8, 2025
12 min read
Everything you need to know about outsourcing insurance operations in 2025: what works, what to avoid, and how to pick the right partner.
A few years ago, I sat across the table from an insurance executive who looked completely drained. His team was drowning in paperwork, backlog on claims was piling up, and customer service queues seemed endless.
“We’re spending so much time just keeping the lights on,” he admitted, “that no one has energy left to think about growth.”
That conversation stuck with me, because it wasn’t unique.
Across the insurance industry, leaders have faced the same challenge: balancing day-to-day operations with the bigger picture of strategy, customer relationships, and innovation.
And in 2025, that challenge has only intensified. Clients expect faster responses, digital-first experiences, and seamless service at every step.
The competition? Sharper than ever.
That’s where insurance business process outsourcing (or BPO) comes in, not as a band-aid, but as a growth lever.
In this guide, we’ll dive deep into how outsourcing is reshaping the insurance landscape today, including:
Why BPO is critical now
What processes make the most sense to outsource
How to choose the right partner
How innovative platforms like Strada are pushing automation beyond cost-cutting and into scaling revenue-driving operations with conversational AI
But before we get into strategies and tech, let’s start with the basics: what insurance BPO really means and why it’s become one of the most important tools for insurers in 2025.
Understanding the insurance BPO basics
Insurance BPO, or insurance business process outsourcing, is the practice of delegating operational tasks to specialized external providers. Unlike traditional outsourcing, which might simply cut costs by moving work offshore, insurance BPO focuses on efficiency, compliance, and industry-specific expertise.
Providers understand insurance workflows, terminology, and regulatory requirements, ensuring high-quality output that aligns with your business goals.
So, what processes can be outsourced in insurance? In insurance, outsourcing often focuses on claims processing, policy servicing, and customer support (we’ll uncover all the other major areas in the next few sections).
Of course, not all outsourcing looks the same. There are a few key types insurers can consider, depending on their goals and resources:
Type | What it means | Benefits | Drawbacks |
Onshore outsourcing | Partnering with providers in the same country | Easier compliance, shared language/culture, faster communication | Higher costs compared to nearshore/offshore options |
Nearshore outsourcing | Working with providers in nearby countries with similar time zones | Cost savings, easier collaboration than offshore, cultural alignment | Limited talent pool compared to offshore |
Offshore outsourcing | Partnering with providers in global hubs (e.g., India, Philippines) | Significant cost reduction, 24/7 support, large talent pool | Time zone gaps, potential communication challenges, regulatory complexity |
Co-sourcing / Hybrid | Blending internal teams with outsourced partners | Flexibility, control over critical functions, scalable | Can be harder to manage, risk of overlapping roles |
AI-driven outsourcing (e.g., Strada) | Using AI platforms for tasks like renewals, claims updates, and customer calls | Scalable, fast, reduces human error, available 24/7 | Still evolving, may require integration and change management |
Now that you know what insurance BPO covers, the next question is why do insurers actually choose it? Let’s look at the main reasons.
Why do insurance companies outsource?
Insurance companies are increasingly turning to insurance BPO outsourcing. But why exactly? Let’s break it down.
Cost savings
Outsourcing can significantly reduce operational expenses. By delegating routine or labor-intensive tasks, companies cut staffing, training, and infrastructure costs.
For example, conversational AI platforms like Strada illustrate this in action: it’s more cost-effective than human agents to handle some mundane and repetitive tasks by using AI while delivering consistent, high-quality support.
Efficiency and turnaround time
Outsourced teams and AI-driven platforms can handle high volumes quickly and accurately. No matter if it’s processing claims, underwriting support, or policy updates, tasks are completed faster.
Strada answers 85%+ of calls and provides 24/7/365 availability, ensuring that clients never wait and workflows keep moving smoothly.
Customer experience
Timely, accurate, and personalized service drives satisfaction. Outsourcing enables round-the-clock support without overloading internal teams.
With AI-powered assistants, for example, clients can get answers, submit claims, or request policy updates instantly, improving engagement and loyalty.
Scalability and flexibility
Business demands fluctuate. Outsourcing allows companies to scale operations up or down without the costs and delays of hiring full-time staff.
During peak periods, BPO providers can handle surges in call volume or documentation needs effortlessly.
The benefits of insurance BPO are clear, but outsourcing has moved beyond just shifting tasks from one team to another. It’s about rethinking how those tasks get done in the first place.
That’s where AI-driven outsourcing comes in. Instead of relying solely on human agents, carriers, MGAs, and brokers are now tapping into conversational AI platforms like Strada to handle the front office with speed, accuracy, and scale.
Strada was purpose-built for insurance, trained to understand industry terminology and workflows.
It doesn’t just answer calls. It manages renewals, processes FNOLs, assists with policy servicing, and even supports quote intake. Available 24/7 by phone and SMS, Strada ensures customers never face hold times or missed calls, while delivering compliance-grade accuracy that reduces E&O risk.
So, we’ve covered the “why,” so let’s move to the “what.” Here are the most common services insurers delegate to BPO partners.
What services are usually outsourced?
Insurance business process outsourcing allows carriers and agencies to delegate tasks that are repetitive, time-consuming, or require specialized expertise. This frees internal teams to focus on strategic, revenue-generating activities.
Here’s a breakdown of common services that are typically outsourced:
Process | What it involves | Practical benefits | Example with Strada |
Claims processing | Handling FNOL, documentation, and status updates | Faster turnaround, fewer errors, improved customer satisfaction | Captures FNOL 24/7 via phone/SMS and pushes details directly into AMS |
Policy administration & renewals | Managing updates, endorsements, and policy renewals | Scales without adding staff, boosts retention | Runs automated renewal campaigns with retries, Caller ID, and scheduling |
Underwriting support | Data collection, risk assessments, preliminary approvals | Ensures consistency, compliance, and efficiency | — |
Regulatory compliance & reporting | Tracking filings, producing accurate reports on time | Reduces compliance risk, ensures timely delivery | — |
Customer support (voice, chat, email) | Handling inquiries, servicing requests, inbound/outbound calls | 24/7 coverage, zero hold time, lighter internal workload | AI-powered policy servicing and customer calls at scale |
Data entry & document management | Entering records, updating policy details, and digitizing documents | Saves time, reduces manual errors | — |
Analytics & fraud detection | Monitoring data, generating insights, spotting fraud | Improves decision-making, enhances security | AI tools flag unusual activity and deliver actionable insights |
Once you know what can be outsourced, the next step is seeing who provides these services. Let’s explore the key players.
Who are the main players in this space?
The landscape of insurance industry outsourcing is diverse, ranging from traditional BPO providers to insurtech startups and AI-driven platforms. Each brings unique strengths to carriers and agencies looking to streamline operations.
Here are several of the top companies known for excellence in insurance BPO, with what makes them stand out:
Company | What they do best / Strengths | Good for which insurers / Use cases |
WNS Global Services | End-to-end insurance BPO: policy administration, claims (including fraud), underwriting, CX, analytics. They invest heavily in analytics & automation. | Large insurers needing full back-office outsourcing; those wanting global scale + tech heft. |
Infosys BPM | Strong tech stack + platform-based solutions; good at policy administration, underwriting support, global delivery, cost optimization. | Insurers looking for modernization, scalable workflows, leveraging offshore/nearshore centers. |
Cognizant | Deep in digital transformation, claims automation, risk & compliance, customer experience in insurance. | Carriers/MGAs that want to reduce manual work and improve speed/customer satisfaction. |
Accenture | Broad consulting + BPO. They combine strategic advisory + outsourced operations. Good at using AI/automation in insurance processes. | Insurers that need guidance + execution; large-scale operations; transforming multiple areas (claims, underwriting, policies). |
Invensis | Specialized in insurance back-office, policy admin, claims, data/document management. They emphasize flexibility and scalability. | Smaller to mid-size insurers, or those who want to offload specific back-office functions. |
While each of these providers brings unique strengths to the table, the best way to decide who’s right for your business is to dive into real case studies.
Seeing how each partner has solved challenges similar to yours (no matter if it’s scaling customer service, reducing claims backlog, or improving retention) gives the clearest picture of what you can expect in practice.
That’s why testimonials matter.
They don’t just highlight features, but show how real insurance teams put these solutions to work. For example, here’s how one team describes their experience with Strada:
"Leveraging Strada as a foundation, we’ve created Aimee, our AI agent, to seamlessly complement our support team.
It allows us to scale with confidence, while ensuring that trust, governance, and human expertise remain central to every customer experience.", shares Fernanda Soares, Senior Manager of Business Operations and Strategy at Tint.
And, of course, providers aren’t working in a vacuum. Technology, regulations, and customer expectations are shaping how BPO looks in 2025.
What trends are shaping insurance BPO in 2025?
The way insurers approach outsourcing today looks very different from the way it did just a few years ago. What was once mostly about cutting costs has evolved into a strategic advantage shaped by technology, regulation, and rising customer expectations.
To stay competitive in 2025, insurers need to keep an eye on the trends that are reshaping BPO. Here are the key ones driving change right now:
AI & automation at scale → platforms can now manage high-volume calls, process claims, and update policies with minimal human input. Strada leads here, offering infinitely scalable AI phone agents, no engineering lift, and built-in accuracy testing.
Cloud-driven flexibility → cloud tech enables faster deployment, seamless integrations, dynamic scaling, and efficient support for remote teams, reducing downtime and simplifying updates.
Customer experience as a priority → clients demand 24/7 access, instant responses, and personalized service. Outsourcing now emphasizes delivering top-quality experiences while lightening internal workloads.
Regulatory compliance & data security → pressure from HIPAA, GDPR, and local rules means sensitive data must be handled carefully. Strada addresses this with SOC 2 Type 2 certification, data isolation, training data privacy, LLM privacy, and penetration testing.
AI-driven analytics → outsourcing partners are adopting advanced analytics for fraud detection, predictive insights, and smarter decision-making.
Hybrid human + AI models → combining automation with human expertise allows insurers to scale efficiently while maintaining empathy and nuanced judgment where needed.
Globalized outsourcing networks → insurers are leveraging diverse geographies to balance costs, ensure multilingual support, and navigate regional compliance requirements.
Trends tell us where the industry is heading, but what does it mean for you today? Let’s break down the risks.
What are the risks?
Outsourcing isn’t without risks. Insurers should be aware of:
Data security concerns → sensitive information must be protected against breaches.
Quality control → not every provider can maintain consistent service across large volumes.
Hidden costs → setup, training, or maintenance fees can erode savings.
Dependency → relying too heavily on one provider can limit flexibility.
This is where modern AI-driven BPO solutions offer reassurance.
Strada, for example, mitigates many of these risks with enterprise-grade security. It holds SOC 2 Type 2 certification, ensures data isolation, maintains training data privacy, and performs regular penetration testing. Its transparent AI evaluation tools make performance measurable and trustworthy.
If the benefits outweigh the risks, the next challenge is picking the right partner. Here’s what to look for.
How do you choose the right BPO partner?
Selecting the right partner for insurance process outsourcing can make or break your strategy. The best providers bring more than manpower, they deliver expertise, technology, and reliability that align with your business goals.
Here’s how to choose the right one:
What to check | Why it matters | How to check | Where Strada excels |
Experience & expertise | Ensures knowledge of insurance processes (claims, underwriting, renewals, support) | Ask for case studies, client testimonials, industry track record | Built specifically for insurance; proven renewals, FNOL, and policy servicing use cases |
Technology capabilities | Modern BPO is powered by platforms, not just people | Verify integrations (PMS, AMS, CMS, CRM), API automation, workflow support | Insurance-specific AI trained on industry terminology; native AMS/CRM integrations; zero-hold-time servicing |
Security & compliance | Protects sensitive data and avoids regulatory risk | Look for SOC 2, HIPAA, GDPR certifications and audits | SOC 2 Type 2 certified; data isolation; LLM privacy; penetration testing |
Pricing model | Impacts scalability and long-term ROI | Compare subscription vs. usage-based models; check for hidden fees | Transparent, scalable pricing aligned with call volume and automation needs |
Scalability & flexibility | Supports growth without straining operations | Ask about 24/7 coverage, peak handling, hybrid models | Infinitely scalable AI agents; no engineering lift; available 24/7 across phone & SMS |
Choosing a partner is just the beginning. You’ll also need a clear transition plan. Let’s walk through it step by step.
What does the transition process look like, step by step?
Moving insurance operations to a BPO partner doesn’t have to feel overwhelming. With the right plan, you can make the shift smoothly and keep your team confident throughout the process.
Think of it as six clear phases: preparation, design, pilot, knowledge transfer, deployment, and optimization.
Let’s talk details.
Step #1. Prepare
Every successful outsourcing journey begins with preparation.
This is where insurers audit existing workflows, define clear goals, and assign ownership across the team.
Without this groundwork, even the best outsourcing partner will struggle to deliver results, because there’s no shared clarity on what success looks like.
Step #2. Design
Once preparation is complete, the focus shifts to design.
At this stage, processes are mapped out, and SLAs and KPIs are defined. This creates a blueprint that both your internal team and your outsourcing partner can follow.
Strada accelerates this step with ready-made insurance playbooks, giving organizations a head start in building efficient and compliant workflows.
Step #3. Pilot
The natural next step is to run a pilot. Instead of rolling out everything at once, insurers test a single process or line of business, measuring results carefully.
This lowers risk and provides early proof of value.
Strada makes pilots especially effective, thanks to its fast setup and ability to iterate quickly, so insurers can see tangible improvements without long delays.
Step #4. Knowledge transfer
With a successful pilot behind you, attention turns to knowledge transfer. This involves sharing documentation, recordings, and training material to ensure the partner or platform can deliver consistent, accurate service.
Strada simplifies this by turning agency content directly into usable knowledge, providing instant, accurate answers from day one.
Step #5. Deploy
Armed with aligned processes and trained systems, the next step is deployment. Instead of a big-bang launch, rollouts typically happen in phases, with close monitoring at each stage.
This reduces disruption and ensures a smoother transition. Strada’s “no engineering lift” approach, along with its native integrations, makes deployment significantly easier, allowing teams to go live faster and with fewer headaches.
Step #6. Optimize
Finally, outsourcing is not a one-time switch but an ongoing journey. The optimization phase focuses on using analytics to refine workflows, adjust processes, and drive continuous improvement.
Strada supports this with built-in evaluation tools that measure accuracy and performance, ensuring the system gets smarter and more effective over time.
Through all these steps, communication is the glue that holds the process together.
By bringing your team into the journey early, explaining the “why,” and celebrating wins along the way, change management becomes easier. And when paired with insurance-trained AI like Strada, the transition becomes a long-term advantage for insurers looking to scale smarter, faster, and with greater confidence.
Once the transition is complete, you’ll want proof it’s working. That’s where KPIs come in.
How do you measure success?
Success in insurance BPO isn’t just about moving tasks off your plate, it’s about proving the decision creates measurable business impact. The only way to know that is by tracking the right KPIs.
Some of the most important indicators include:
Call answer rate → if customers can’t reach you, nothing else matters. Strada sets the benchmark here, answering 85%+ of inbound calls.
Retention uplift → renewal campaigns are a perfect test case. An effective partner should increase your policyholder retention rates by consistently reaching clients on time.
CX metrics → look for zero hold time, faster claims support, and positive satisfaction surveys. Strada, for example, enables 24/7 access with no waiting.
Cost per interaction → the whole point of outsourcing is efficiency. With automation and AI, cost per call or task should be significantly lower compared to human agents.
To make this easy, think of success like a dashboard. If these dials are moving in the right direction, you’re winning.
Technology can make measurement easier.
Strada includes built-in AI evaluation tools that track accuracy, flag risks, and reduce potential errors and omissions. That kind of visibility ensures you’re not just saving money, you’re protecting compliance and reputation, too.
Also, performance reviews shouldn’t be a once-a-year event. Instead, set a cadence of monthly check-ins during the early stages, then shift to quarterly business reviews once the partnership is stable.
Use those sessions to track KPIs, share feedback, and adjust workflows.
But what if results don’t meet expectations? Start with the data. Pinpoint whether the issue is volume, process design, or execution.
Work with your provider to tweak scripts, refine routing, or add automation where gaps exist. If the problems persist, escalate and ask for a clear improvement plan.
The most successful insurance teams treat measurement as a loop:
Set KPIs
Review regularly
Refine quickly.
That approach keeps outsourcing aligned with business goals and ensures your BPO partner delivers value beyond cost savings.
We’ve covered the full journey from basics to the future. So, is outsourcing or AI the right move for you? Let’s wrap it up.
Outsourcing in the insurance industry or AI, what to choose?
When I first worked with an insurer experimenting with BPO, I saw the relief on their team’s faces when claims backlog finally cleared, and calls no longer piled up unanswered.
Years later, when AI tools entered the mix, I watched another team go from constantly “catching up” to being permanently ahead – serving policyholders faster than they ever thought possible.
The lesson was clear: it’s not about choosing people or technology. It’s about combining both in a way that works for your business.
The main takeaway from this guide is simple: both insurance business process outsourcing and AI-driven solutions have their place.
In 2025, insurers can’t afford to ignore efficiency, scalability, or customer experience. That’s why many are combining traditional insurance BPO with AI-powered tools, creating a hybrid model that maximizes value.
Is it worth it? Absolutely.
Outsourcing reduces costs, speeds up turnaround times, and lets your team focus on strategic work. AI takes it further, handling repetitive tasks instantly, scaling infinitely, and operating 24/7.
Together, they provide the flexibility insurers need to thrive in a competitive market.
If you’re considering the shift, think of outsourcing and AI not as an either/or, but as a partnership. Human expertise and machine efficiency can complement each other, creating a smarter, leaner operation.
And if you’re looking to scale customer conversations, reduce costs, and deliver always-on service, Strada might be the partner worth exploring.
Get a demo and see how insurance-specific AI agents can transform your front office.
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The Ultimate Guide to Insurance Business Process Outsourcing [2025 Updated]
Amir Prodensky
CEO
Oct 8, 2025
12 min read
Everything you need to know about outsourcing insurance operations in 2025: what works, what to avoid, and how to pick the right partner.
A few years ago, I sat across the table from an insurance executive who looked completely drained. His team was drowning in paperwork, backlog on claims was piling up, and customer service queues seemed endless.
“We’re spending so much time just keeping the lights on,” he admitted, “that no one has energy left to think about growth.”
That conversation stuck with me, because it wasn’t unique.
Across the insurance industry, leaders have faced the same challenge: balancing day-to-day operations with the bigger picture of strategy, customer relationships, and innovation.
And in 2025, that challenge has only intensified. Clients expect faster responses, digital-first experiences, and seamless service at every step.
The competition? Sharper than ever.
That’s where insurance business process outsourcing (or BPO) comes in, not as a band-aid, but as a growth lever.
In this guide, we’ll dive deep into how outsourcing is reshaping the insurance landscape today, including:
Why BPO is critical now
What processes make the most sense to outsource
How to choose the right partner
How innovative platforms like Strada are pushing automation beyond cost-cutting and into scaling revenue-driving operations with conversational AI
But before we get into strategies and tech, let’s start with the basics: what insurance BPO really means and why it’s become one of the most important tools for insurers in 2025.
Understanding the insurance BPO basics
Insurance BPO, or insurance business process outsourcing, is the practice of delegating operational tasks to specialized external providers. Unlike traditional outsourcing, which might simply cut costs by moving work offshore, insurance BPO focuses on efficiency, compliance, and industry-specific expertise.
Providers understand insurance workflows, terminology, and regulatory requirements, ensuring high-quality output that aligns with your business goals.
So, what processes can be outsourced in insurance? In insurance, outsourcing often focuses on claims processing, policy servicing, and customer support (we’ll uncover all the other major areas in the next few sections).
Of course, not all outsourcing looks the same. There are a few key types insurers can consider, depending on their goals and resources:
Type | What it means | Benefits | Drawbacks |
Onshore outsourcing | Partnering with providers in the same country | Easier compliance, shared language/culture, faster communication | Higher costs compared to nearshore/offshore options |
Nearshore outsourcing | Working with providers in nearby countries with similar time zones | Cost savings, easier collaboration than offshore, cultural alignment | Limited talent pool compared to offshore |
Offshore outsourcing | Partnering with providers in global hubs (e.g., India, Philippines) | Significant cost reduction, 24/7 support, large talent pool | Time zone gaps, potential communication challenges, regulatory complexity |
Co-sourcing / Hybrid | Blending internal teams with outsourced partners | Flexibility, control over critical functions, scalable | Can be harder to manage, risk of overlapping roles |
AI-driven outsourcing (e.g., Strada) | Using AI platforms for tasks like renewals, claims updates, and customer calls | Scalable, fast, reduces human error, available 24/7 | Still evolving, may require integration and change management |
Now that you know what insurance BPO covers, the next question is why do insurers actually choose it? Let’s look at the main reasons.
Why do insurance companies outsource?
Insurance companies are increasingly turning to insurance BPO outsourcing. But why exactly? Let’s break it down.
Cost savings
Outsourcing can significantly reduce operational expenses. By delegating routine or labor-intensive tasks, companies cut staffing, training, and infrastructure costs.
For example, conversational AI platforms like Strada illustrate this in action: it’s more cost-effective than human agents to handle some mundane and repetitive tasks by using AI while delivering consistent, high-quality support.
Efficiency and turnaround time
Outsourced teams and AI-driven platforms can handle high volumes quickly and accurately. No matter if it’s processing claims, underwriting support, or policy updates, tasks are completed faster.
Strada answers 85%+ of calls and provides 24/7/365 availability, ensuring that clients never wait and workflows keep moving smoothly.
Customer experience
Timely, accurate, and personalized service drives satisfaction. Outsourcing enables round-the-clock support without overloading internal teams.
With AI-powered assistants, for example, clients can get answers, submit claims, or request policy updates instantly, improving engagement and loyalty.
Scalability and flexibility
Business demands fluctuate. Outsourcing allows companies to scale operations up or down without the costs and delays of hiring full-time staff.
During peak periods, BPO providers can handle surges in call volume or documentation needs effortlessly.
The benefits of insurance BPO are clear, but outsourcing has moved beyond just shifting tasks from one team to another. It’s about rethinking how those tasks get done in the first place.
That’s where AI-driven outsourcing comes in. Instead of relying solely on human agents, carriers, MGAs, and brokers are now tapping into conversational AI platforms like Strada to handle the front office with speed, accuracy, and scale.
Strada was purpose-built for insurance, trained to understand industry terminology and workflows.
It doesn’t just answer calls. It manages renewals, processes FNOLs, assists with policy servicing, and even supports quote intake. Available 24/7 by phone and SMS, Strada ensures customers never face hold times or missed calls, while delivering compliance-grade accuracy that reduces E&O risk.
So, we’ve covered the “why,” so let’s move to the “what.” Here are the most common services insurers delegate to BPO partners.
What services are usually outsourced?
Insurance business process outsourcing allows carriers and agencies to delegate tasks that are repetitive, time-consuming, or require specialized expertise. This frees internal teams to focus on strategic, revenue-generating activities.
Here’s a breakdown of common services that are typically outsourced:
Process | What it involves | Practical benefits | Example with Strada |
Claims processing | Handling FNOL, documentation, and status updates | Faster turnaround, fewer errors, improved customer satisfaction | Captures FNOL 24/7 via phone/SMS and pushes details directly into AMS |
Policy administration & renewals | Managing updates, endorsements, and policy renewals | Scales without adding staff, boosts retention | Runs automated renewal campaigns with retries, Caller ID, and scheduling |
Underwriting support | Data collection, risk assessments, preliminary approvals | Ensures consistency, compliance, and efficiency | — |
Regulatory compliance & reporting | Tracking filings, producing accurate reports on time | Reduces compliance risk, ensures timely delivery | — |
Customer support (voice, chat, email) | Handling inquiries, servicing requests, inbound/outbound calls | 24/7 coverage, zero hold time, lighter internal workload | AI-powered policy servicing and customer calls at scale |
Data entry & document management | Entering records, updating policy details, and digitizing documents | Saves time, reduces manual errors | — |
Analytics & fraud detection | Monitoring data, generating insights, spotting fraud | Improves decision-making, enhances security | AI tools flag unusual activity and deliver actionable insights |
Once you know what can be outsourced, the next step is seeing who provides these services. Let’s explore the key players.
Who are the main players in this space?
The landscape of insurance industry outsourcing is diverse, ranging from traditional BPO providers to insurtech startups and AI-driven platforms. Each brings unique strengths to carriers and agencies looking to streamline operations.
Here are several of the top companies known for excellence in insurance BPO, with what makes them stand out:
Company | What they do best / Strengths | Good for which insurers / Use cases |
WNS Global Services | End-to-end insurance BPO: policy administration, claims (including fraud), underwriting, CX, analytics. They invest heavily in analytics & automation. | Large insurers needing full back-office outsourcing; those wanting global scale + tech heft. |
Infosys BPM | Strong tech stack + platform-based solutions; good at policy administration, underwriting support, global delivery, cost optimization. | Insurers looking for modernization, scalable workflows, leveraging offshore/nearshore centers. |
Cognizant | Deep in digital transformation, claims automation, risk & compliance, customer experience in insurance. | Carriers/MGAs that want to reduce manual work and improve speed/customer satisfaction. |
Accenture | Broad consulting + BPO. They combine strategic advisory + outsourced operations. Good at using AI/automation in insurance processes. | Insurers that need guidance + execution; large-scale operations; transforming multiple areas (claims, underwriting, policies). |
Invensis | Specialized in insurance back-office, policy admin, claims, data/document management. They emphasize flexibility and scalability. | Smaller to mid-size insurers, or those who want to offload specific back-office functions. |
While each of these providers brings unique strengths to the table, the best way to decide who’s right for your business is to dive into real case studies.
Seeing how each partner has solved challenges similar to yours (no matter if it’s scaling customer service, reducing claims backlog, or improving retention) gives the clearest picture of what you can expect in practice.
That’s why testimonials matter.
They don’t just highlight features, but show how real insurance teams put these solutions to work. For example, here’s how one team describes their experience with Strada:
"Leveraging Strada as a foundation, we’ve created Aimee, our AI agent, to seamlessly complement our support team.
It allows us to scale with confidence, while ensuring that trust, governance, and human expertise remain central to every customer experience.", shares Fernanda Soares, Senior Manager of Business Operations and Strategy at Tint.
And, of course, providers aren’t working in a vacuum. Technology, regulations, and customer expectations are shaping how BPO looks in 2025.
What trends are shaping insurance BPO in 2025?
The way insurers approach outsourcing today looks very different from the way it did just a few years ago. What was once mostly about cutting costs has evolved into a strategic advantage shaped by technology, regulation, and rising customer expectations.
To stay competitive in 2025, insurers need to keep an eye on the trends that are reshaping BPO. Here are the key ones driving change right now:
AI & automation at scale → platforms can now manage high-volume calls, process claims, and update policies with minimal human input. Strada leads here, offering infinitely scalable AI phone agents, no engineering lift, and built-in accuracy testing.
Cloud-driven flexibility → cloud tech enables faster deployment, seamless integrations, dynamic scaling, and efficient support for remote teams, reducing downtime and simplifying updates.
Customer experience as a priority → clients demand 24/7 access, instant responses, and personalized service. Outsourcing now emphasizes delivering top-quality experiences while lightening internal workloads.
Regulatory compliance & data security → pressure from HIPAA, GDPR, and local rules means sensitive data must be handled carefully. Strada addresses this with SOC 2 Type 2 certification, data isolation, training data privacy, LLM privacy, and penetration testing.
AI-driven analytics → outsourcing partners are adopting advanced analytics for fraud detection, predictive insights, and smarter decision-making.
Hybrid human + AI models → combining automation with human expertise allows insurers to scale efficiently while maintaining empathy and nuanced judgment where needed.
Globalized outsourcing networks → insurers are leveraging diverse geographies to balance costs, ensure multilingual support, and navigate regional compliance requirements.
Trends tell us where the industry is heading, but what does it mean for you today? Let’s break down the risks.
What are the risks?
Outsourcing isn’t without risks. Insurers should be aware of:
Data security concerns → sensitive information must be protected against breaches.
Quality control → not every provider can maintain consistent service across large volumes.
Hidden costs → setup, training, or maintenance fees can erode savings.
Dependency → relying too heavily on one provider can limit flexibility.
This is where modern AI-driven BPO solutions offer reassurance.
Strada, for example, mitigates many of these risks with enterprise-grade security. It holds SOC 2 Type 2 certification, ensures data isolation, maintains training data privacy, and performs regular penetration testing. Its transparent AI evaluation tools make performance measurable and trustworthy.
If the benefits outweigh the risks, the next challenge is picking the right partner. Here’s what to look for.
How do you choose the right BPO partner?
Selecting the right partner for insurance process outsourcing can make or break your strategy. The best providers bring more than manpower, they deliver expertise, technology, and reliability that align with your business goals.
Here’s how to choose the right one:
What to check | Why it matters | How to check | Where Strada excels |
Experience & expertise | Ensures knowledge of insurance processes (claims, underwriting, renewals, support) | Ask for case studies, client testimonials, industry track record | Built specifically for insurance; proven renewals, FNOL, and policy servicing use cases |
Technology capabilities | Modern BPO is powered by platforms, not just people | Verify integrations (PMS, AMS, CMS, CRM), API automation, workflow support | Insurance-specific AI trained on industry terminology; native AMS/CRM integrations; zero-hold-time servicing |
Security & compliance | Protects sensitive data and avoids regulatory risk | Look for SOC 2, HIPAA, GDPR certifications and audits | SOC 2 Type 2 certified; data isolation; LLM privacy; penetration testing |
Pricing model | Impacts scalability and long-term ROI | Compare subscription vs. usage-based models; check for hidden fees | Transparent, scalable pricing aligned with call volume and automation needs |
Scalability & flexibility | Supports growth without straining operations | Ask about 24/7 coverage, peak handling, hybrid models | Infinitely scalable AI agents; no engineering lift; available 24/7 across phone & SMS |
Choosing a partner is just the beginning. You’ll also need a clear transition plan. Let’s walk through it step by step.
What does the transition process look like, step by step?
Moving insurance operations to a BPO partner doesn’t have to feel overwhelming. With the right plan, you can make the shift smoothly and keep your team confident throughout the process.
Think of it as six clear phases: preparation, design, pilot, knowledge transfer, deployment, and optimization.
Let’s talk details.
Step #1. Prepare
Every successful outsourcing journey begins with preparation.
This is where insurers audit existing workflows, define clear goals, and assign ownership across the team.
Without this groundwork, even the best outsourcing partner will struggle to deliver results, because there’s no shared clarity on what success looks like.
Step #2. Design
Once preparation is complete, the focus shifts to design.
At this stage, processes are mapped out, and SLAs and KPIs are defined. This creates a blueprint that both your internal team and your outsourcing partner can follow.
Strada accelerates this step with ready-made insurance playbooks, giving organizations a head start in building efficient and compliant workflows.
Step #3. Pilot
The natural next step is to run a pilot. Instead of rolling out everything at once, insurers test a single process or line of business, measuring results carefully.
This lowers risk and provides early proof of value.
Strada makes pilots especially effective, thanks to its fast setup and ability to iterate quickly, so insurers can see tangible improvements without long delays.
Step #4. Knowledge transfer
With a successful pilot behind you, attention turns to knowledge transfer. This involves sharing documentation, recordings, and training material to ensure the partner or platform can deliver consistent, accurate service.
Strada simplifies this by turning agency content directly into usable knowledge, providing instant, accurate answers from day one.
Step #5. Deploy
Armed with aligned processes and trained systems, the next step is deployment. Instead of a big-bang launch, rollouts typically happen in phases, with close monitoring at each stage.
This reduces disruption and ensures a smoother transition. Strada’s “no engineering lift” approach, along with its native integrations, makes deployment significantly easier, allowing teams to go live faster and with fewer headaches.
Step #6. Optimize
Finally, outsourcing is not a one-time switch but an ongoing journey. The optimization phase focuses on using analytics to refine workflows, adjust processes, and drive continuous improvement.
Strada supports this with built-in evaluation tools that measure accuracy and performance, ensuring the system gets smarter and more effective over time.
Through all these steps, communication is the glue that holds the process together.
By bringing your team into the journey early, explaining the “why,” and celebrating wins along the way, change management becomes easier. And when paired with insurance-trained AI like Strada, the transition becomes a long-term advantage for insurers looking to scale smarter, faster, and with greater confidence.
Once the transition is complete, you’ll want proof it’s working. That’s where KPIs come in.
How do you measure success?
Success in insurance BPO isn’t just about moving tasks off your plate, it’s about proving the decision creates measurable business impact. The only way to know that is by tracking the right KPIs.
Some of the most important indicators include:
Call answer rate → if customers can’t reach you, nothing else matters. Strada sets the benchmark here, answering 85%+ of inbound calls.
Retention uplift → renewal campaigns are a perfect test case. An effective partner should increase your policyholder retention rates by consistently reaching clients on time.
CX metrics → look for zero hold time, faster claims support, and positive satisfaction surveys. Strada, for example, enables 24/7 access with no waiting.
Cost per interaction → the whole point of outsourcing is efficiency. With automation and AI, cost per call or task should be significantly lower compared to human agents.
To make this easy, think of success like a dashboard. If these dials are moving in the right direction, you’re winning.
Technology can make measurement easier.
Strada includes built-in AI evaluation tools that track accuracy, flag risks, and reduce potential errors and omissions. That kind of visibility ensures you’re not just saving money, you’re protecting compliance and reputation, too.
Also, performance reviews shouldn’t be a once-a-year event. Instead, set a cadence of monthly check-ins during the early stages, then shift to quarterly business reviews once the partnership is stable.
Use those sessions to track KPIs, share feedback, and adjust workflows.
But what if results don’t meet expectations? Start with the data. Pinpoint whether the issue is volume, process design, or execution.
Work with your provider to tweak scripts, refine routing, or add automation where gaps exist. If the problems persist, escalate and ask for a clear improvement plan.
The most successful insurance teams treat measurement as a loop:
Set KPIs
Review regularly
Refine quickly.
That approach keeps outsourcing aligned with business goals and ensures your BPO partner delivers value beyond cost savings.
We’ve covered the full journey from basics to the future. So, is outsourcing or AI the right move for you? Let’s wrap it up.
Outsourcing in the insurance industry or AI, what to choose?
When I first worked with an insurer experimenting with BPO, I saw the relief on their team’s faces when claims backlog finally cleared, and calls no longer piled up unanswered.
Years later, when AI tools entered the mix, I watched another team go from constantly “catching up” to being permanently ahead – serving policyholders faster than they ever thought possible.
The lesson was clear: it’s not about choosing people or technology. It’s about combining both in a way that works for your business.
The main takeaway from this guide is simple: both insurance business process outsourcing and AI-driven solutions have their place.
In 2025, insurers can’t afford to ignore efficiency, scalability, or customer experience. That’s why many are combining traditional insurance BPO with AI-powered tools, creating a hybrid model that maximizes value.
Is it worth it? Absolutely.
Outsourcing reduces costs, speeds up turnaround times, and lets your team focus on strategic work. AI takes it further, handling repetitive tasks instantly, scaling infinitely, and operating 24/7.
Together, they provide the flexibility insurers need to thrive in a competitive market.
If you’re considering the shift, think of outsourcing and AI not as an either/or, but as a partnership. Human expertise and machine efficiency can complement each other, creating a smarter, leaner operation.
And if you’re looking to scale customer conversations, reduce costs, and deliver always-on service, Strada might be the partner worth exploring.
Get a demo and see how insurance-specific AI agents can transform your front office.
Table of Contents
Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
Start scaling with voice AI agents today
Join innovative carriers and MGAs transforming their calls with Strada.
The Ultimate Guide to Insurance Business Process Outsourcing [2025 Updated]
Amir Prodensky
CEO
Oct 8, 2025
12 min read
Everything you need to know about outsourcing insurance operations in 2025: what works, what to avoid, and how to pick the right partner.
A few years ago, I sat across the table from an insurance executive who looked completely drained. His team was drowning in paperwork, backlog on claims was piling up, and customer service queues seemed endless.
“We’re spending so much time just keeping the lights on,” he admitted, “that no one has energy left to think about growth.”
That conversation stuck with me, because it wasn’t unique.
Across the insurance industry, leaders have faced the same challenge: balancing day-to-day operations with the bigger picture of strategy, customer relationships, and innovation.
And in 2025, that challenge has only intensified. Clients expect faster responses, digital-first experiences, and seamless service at every step.
The competition? Sharper than ever.
That’s where insurance business process outsourcing (or BPO) comes in, not as a band-aid, but as a growth lever.
In this guide, we’ll dive deep into how outsourcing is reshaping the insurance landscape today, including:
Why BPO is critical now
What processes make the most sense to outsource
How to choose the right partner
How innovative platforms like Strada are pushing automation beyond cost-cutting and into scaling revenue-driving operations with conversational AI
But before we get into strategies and tech, let’s start with the basics: what insurance BPO really means and why it’s become one of the most important tools for insurers in 2025.
Understanding the insurance BPO basics
Insurance BPO, or insurance business process outsourcing, is the practice of delegating operational tasks to specialized external providers. Unlike traditional outsourcing, which might simply cut costs by moving work offshore, insurance BPO focuses on efficiency, compliance, and industry-specific expertise.
Providers understand insurance workflows, terminology, and regulatory requirements, ensuring high-quality output that aligns with your business goals.
So, what processes can be outsourced in insurance? In insurance, outsourcing often focuses on claims processing, policy servicing, and customer support (we’ll uncover all the other major areas in the next few sections).
Of course, not all outsourcing looks the same. There are a few key types insurers can consider, depending on their goals and resources:
Type | What it means | Benefits | Drawbacks |
Onshore outsourcing | Partnering with providers in the same country | Easier compliance, shared language/culture, faster communication | Higher costs compared to nearshore/offshore options |
Nearshore outsourcing | Working with providers in nearby countries with similar time zones | Cost savings, easier collaboration than offshore, cultural alignment | Limited talent pool compared to offshore |
Offshore outsourcing | Partnering with providers in global hubs (e.g., India, Philippines) | Significant cost reduction, 24/7 support, large talent pool | Time zone gaps, potential communication challenges, regulatory complexity |
Co-sourcing / Hybrid | Blending internal teams with outsourced partners | Flexibility, control over critical functions, scalable | Can be harder to manage, risk of overlapping roles |
AI-driven outsourcing (e.g., Strada) | Using AI platforms for tasks like renewals, claims updates, and customer calls | Scalable, fast, reduces human error, available 24/7 | Still evolving, may require integration and change management |
Now that you know what insurance BPO covers, the next question is why do insurers actually choose it? Let’s look at the main reasons.
Why do insurance companies outsource?
Insurance companies are increasingly turning to insurance BPO outsourcing. But why exactly? Let’s break it down.
Cost savings
Outsourcing can significantly reduce operational expenses. By delegating routine or labor-intensive tasks, companies cut staffing, training, and infrastructure costs.
For example, conversational AI platforms like Strada illustrate this in action: it’s more cost-effective than human agents to handle some mundane and repetitive tasks by using AI while delivering consistent, high-quality support.
Efficiency and turnaround time
Outsourced teams and AI-driven platforms can handle high volumes quickly and accurately. No matter if it’s processing claims, underwriting support, or policy updates, tasks are completed faster.
Strada answers 85%+ of calls and provides 24/7/365 availability, ensuring that clients never wait and workflows keep moving smoothly.
Customer experience
Timely, accurate, and personalized service drives satisfaction. Outsourcing enables round-the-clock support without overloading internal teams.
With AI-powered assistants, for example, clients can get answers, submit claims, or request policy updates instantly, improving engagement and loyalty.
Scalability and flexibility
Business demands fluctuate. Outsourcing allows companies to scale operations up or down without the costs and delays of hiring full-time staff.
During peak periods, BPO providers can handle surges in call volume or documentation needs effortlessly.
The benefits of insurance BPO are clear, but outsourcing has moved beyond just shifting tasks from one team to another. It’s about rethinking how those tasks get done in the first place.
That’s where AI-driven outsourcing comes in. Instead of relying solely on human agents, carriers, MGAs, and brokers are now tapping into conversational AI platforms like Strada to handle the front office with speed, accuracy, and scale.
Strada was purpose-built for insurance, trained to understand industry terminology and workflows.
It doesn’t just answer calls. It manages renewals, processes FNOLs, assists with policy servicing, and even supports quote intake. Available 24/7 by phone and SMS, Strada ensures customers never face hold times or missed calls, while delivering compliance-grade accuracy that reduces E&O risk.
So, we’ve covered the “why,” so let’s move to the “what.” Here are the most common services insurers delegate to BPO partners.
What services are usually outsourced?
Insurance business process outsourcing allows carriers and agencies to delegate tasks that are repetitive, time-consuming, or require specialized expertise. This frees internal teams to focus on strategic, revenue-generating activities.
Here’s a breakdown of common services that are typically outsourced:
Process | What it involves | Practical benefits | Example with Strada |
Claims processing | Handling FNOL, documentation, and status updates | Faster turnaround, fewer errors, improved customer satisfaction | Captures FNOL 24/7 via phone/SMS and pushes details directly into AMS |
Policy administration & renewals | Managing updates, endorsements, and policy renewals | Scales without adding staff, boosts retention | Runs automated renewal campaigns with retries, Caller ID, and scheduling |
Underwriting support | Data collection, risk assessments, preliminary approvals | Ensures consistency, compliance, and efficiency | — |
Regulatory compliance & reporting | Tracking filings, producing accurate reports on time | Reduces compliance risk, ensures timely delivery | — |
Customer support (voice, chat, email) | Handling inquiries, servicing requests, inbound/outbound calls | 24/7 coverage, zero hold time, lighter internal workload | AI-powered policy servicing and customer calls at scale |
Data entry & document management | Entering records, updating policy details, and digitizing documents | Saves time, reduces manual errors | — |
Analytics & fraud detection | Monitoring data, generating insights, spotting fraud | Improves decision-making, enhances security | AI tools flag unusual activity and deliver actionable insights |
Once you know what can be outsourced, the next step is seeing who provides these services. Let’s explore the key players.
Who are the main players in this space?
The landscape of insurance industry outsourcing is diverse, ranging from traditional BPO providers to insurtech startups and AI-driven platforms. Each brings unique strengths to carriers and agencies looking to streamline operations.
Here are several of the top companies known for excellence in insurance BPO, with what makes them stand out:
Company | What they do best / Strengths | Good for which insurers / Use cases |
WNS Global Services | End-to-end insurance BPO: policy administration, claims (including fraud), underwriting, CX, analytics. They invest heavily in analytics & automation. | Large insurers needing full back-office outsourcing; those wanting global scale + tech heft. |
Infosys BPM | Strong tech stack + platform-based solutions; good at policy administration, underwriting support, global delivery, cost optimization. | Insurers looking for modernization, scalable workflows, leveraging offshore/nearshore centers. |
Cognizant | Deep in digital transformation, claims automation, risk & compliance, customer experience in insurance. | Carriers/MGAs that want to reduce manual work and improve speed/customer satisfaction. |
Accenture | Broad consulting + BPO. They combine strategic advisory + outsourced operations. Good at using AI/automation in insurance processes. | Insurers that need guidance + execution; large-scale operations; transforming multiple areas (claims, underwriting, policies). |
Invensis | Specialized in insurance back-office, policy admin, claims, data/document management. They emphasize flexibility and scalability. | Smaller to mid-size insurers, or those who want to offload specific back-office functions. |
While each of these providers brings unique strengths to the table, the best way to decide who’s right for your business is to dive into real case studies.
Seeing how each partner has solved challenges similar to yours (no matter if it’s scaling customer service, reducing claims backlog, or improving retention) gives the clearest picture of what you can expect in practice.
That’s why testimonials matter.
They don’t just highlight features, but show how real insurance teams put these solutions to work. For example, here’s how one team describes their experience with Strada:
"Leveraging Strada as a foundation, we’ve created Aimee, our AI agent, to seamlessly complement our support team.
It allows us to scale with confidence, while ensuring that trust, governance, and human expertise remain central to every customer experience.", shares Fernanda Soares, Senior Manager of Business Operations and Strategy at Tint.
And, of course, providers aren’t working in a vacuum. Technology, regulations, and customer expectations are shaping how BPO looks in 2025.
What trends are shaping insurance BPO in 2025?
The way insurers approach outsourcing today looks very different from the way it did just a few years ago. What was once mostly about cutting costs has evolved into a strategic advantage shaped by technology, regulation, and rising customer expectations.
To stay competitive in 2025, insurers need to keep an eye on the trends that are reshaping BPO. Here are the key ones driving change right now:
AI & automation at scale → platforms can now manage high-volume calls, process claims, and update policies with minimal human input. Strada leads here, offering infinitely scalable AI phone agents, no engineering lift, and built-in accuracy testing.
Cloud-driven flexibility → cloud tech enables faster deployment, seamless integrations, dynamic scaling, and efficient support for remote teams, reducing downtime and simplifying updates.
Customer experience as a priority → clients demand 24/7 access, instant responses, and personalized service. Outsourcing now emphasizes delivering top-quality experiences while lightening internal workloads.
Regulatory compliance & data security → pressure from HIPAA, GDPR, and local rules means sensitive data must be handled carefully. Strada addresses this with SOC 2 Type 2 certification, data isolation, training data privacy, LLM privacy, and penetration testing.
AI-driven analytics → outsourcing partners are adopting advanced analytics for fraud detection, predictive insights, and smarter decision-making.
Hybrid human + AI models → combining automation with human expertise allows insurers to scale efficiently while maintaining empathy and nuanced judgment where needed.
Globalized outsourcing networks → insurers are leveraging diverse geographies to balance costs, ensure multilingual support, and navigate regional compliance requirements.
Trends tell us where the industry is heading, but what does it mean for you today? Let’s break down the risks.
What are the risks?
Outsourcing isn’t without risks. Insurers should be aware of:
Data security concerns → sensitive information must be protected against breaches.
Quality control → not every provider can maintain consistent service across large volumes.
Hidden costs → setup, training, or maintenance fees can erode savings.
Dependency → relying too heavily on one provider can limit flexibility.
This is where modern AI-driven BPO solutions offer reassurance.
Strada, for example, mitigates many of these risks with enterprise-grade security. It holds SOC 2 Type 2 certification, ensures data isolation, maintains training data privacy, and performs regular penetration testing. Its transparent AI evaluation tools make performance measurable and trustworthy.
If the benefits outweigh the risks, the next challenge is picking the right partner. Here’s what to look for.
How do you choose the right BPO partner?
Selecting the right partner for insurance process outsourcing can make or break your strategy. The best providers bring more than manpower, they deliver expertise, technology, and reliability that align with your business goals.
Here’s how to choose the right one:
What to check | Why it matters | How to check | Where Strada excels |
Experience & expertise | Ensures knowledge of insurance processes (claims, underwriting, renewals, support) | Ask for case studies, client testimonials, industry track record | Built specifically for insurance; proven renewals, FNOL, and policy servicing use cases |
Technology capabilities | Modern BPO is powered by platforms, not just people | Verify integrations (PMS, AMS, CMS, CRM), API automation, workflow support | Insurance-specific AI trained on industry terminology; native AMS/CRM integrations; zero-hold-time servicing |
Security & compliance | Protects sensitive data and avoids regulatory risk | Look for SOC 2, HIPAA, GDPR certifications and audits | SOC 2 Type 2 certified; data isolation; LLM privacy; penetration testing |
Pricing model | Impacts scalability and long-term ROI | Compare subscription vs. usage-based models; check for hidden fees | Transparent, scalable pricing aligned with call volume and automation needs |
Scalability & flexibility | Supports growth without straining operations | Ask about 24/7 coverage, peak handling, hybrid models | Infinitely scalable AI agents; no engineering lift; available 24/7 across phone & SMS |
Choosing a partner is just the beginning. You’ll also need a clear transition plan. Let’s walk through it step by step.
What does the transition process look like, step by step?
Moving insurance operations to a BPO partner doesn’t have to feel overwhelming. With the right plan, you can make the shift smoothly and keep your team confident throughout the process.
Think of it as six clear phases: preparation, design, pilot, knowledge transfer, deployment, and optimization.
Let’s talk details.
Step #1. Prepare
Every successful outsourcing journey begins with preparation.
This is where insurers audit existing workflows, define clear goals, and assign ownership across the team.
Without this groundwork, even the best outsourcing partner will struggle to deliver results, because there’s no shared clarity on what success looks like.
Step #2. Design
Once preparation is complete, the focus shifts to design.
At this stage, processes are mapped out, and SLAs and KPIs are defined. This creates a blueprint that both your internal team and your outsourcing partner can follow.
Strada accelerates this step with ready-made insurance playbooks, giving organizations a head start in building efficient and compliant workflows.
Step #3. Pilot
The natural next step is to run a pilot. Instead of rolling out everything at once, insurers test a single process or line of business, measuring results carefully.
This lowers risk and provides early proof of value.
Strada makes pilots especially effective, thanks to its fast setup and ability to iterate quickly, so insurers can see tangible improvements without long delays.
Step #4. Knowledge transfer
With a successful pilot behind you, attention turns to knowledge transfer. This involves sharing documentation, recordings, and training material to ensure the partner or platform can deliver consistent, accurate service.
Strada simplifies this by turning agency content directly into usable knowledge, providing instant, accurate answers from day one.
Step #5. Deploy
Armed with aligned processes and trained systems, the next step is deployment. Instead of a big-bang launch, rollouts typically happen in phases, with close monitoring at each stage.
This reduces disruption and ensures a smoother transition. Strada’s “no engineering lift” approach, along with its native integrations, makes deployment significantly easier, allowing teams to go live faster and with fewer headaches.
Step #6. Optimize
Finally, outsourcing is not a one-time switch but an ongoing journey. The optimization phase focuses on using analytics to refine workflows, adjust processes, and drive continuous improvement.
Strada supports this with built-in evaluation tools that measure accuracy and performance, ensuring the system gets smarter and more effective over time.
Through all these steps, communication is the glue that holds the process together.
By bringing your team into the journey early, explaining the “why,” and celebrating wins along the way, change management becomes easier. And when paired with insurance-trained AI like Strada, the transition becomes a long-term advantage for insurers looking to scale smarter, faster, and with greater confidence.
Once the transition is complete, you’ll want proof it’s working. That’s where KPIs come in.
How do you measure success?
Success in insurance BPO isn’t just about moving tasks off your plate, it’s about proving the decision creates measurable business impact. The only way to know that is by tracking the right KPIs.
Some of the most important indicators include:
Call answer rate → if customers can’t reach you, nothing else matters. Strada sets the benchmark here, answering 85%+ of inbound calls.
Retention uplift → renewal campaigns are a perfect test case. An effective partner should increase your policyholder retention rates by consistently reaching clients on time.
CX metrics → look for zero hold time, faster claims support, and positive satisfaction surveys. Strada, for example, enables 24/7 access with no waiting.
Cost per interaction → the whole point of outsourcing is efficiency. With automation and AI, cost per call or task should be significantly lower compared to human agents.
To make this easy, think of success like a dashboard. If these dials are moving in the right direction, you’re winning.
Technology can make measurement easier.
Strada includes built-in AI evaluation tools that track accuracy, flag risks, and reduce potential errors and omissions. That kind of visibility ensures you’re not just saving money, you’re protecting compliance and reputation, too.
Also, performance reviews shouldn’t be a once-a-year event. Instead, set a cadence of monthly check-ins during the early stages, then shift to quarterly business reviews once the partnership is stable.
Use those sessions to track KPIs, share feedback, and adjust workflows.
But what if results don’t meet expectations? Start with the data. Pinpoint whether the issue is volume, process design, or execution.
Work with your provider to tweak scripts, refine routing, or add automation where gaps exist. If the problems persist, escalate and ask for a clear improvement plan.
The most successful insurance teams treat measurement as a loop:
Set KPIs
Review regularly
Refine quickly.
That approach keeps outsourcing aligned with business goals and ensures your BPO partner delivers value beyond cost savings.
We’ve covered the full journey from basics to the future. So, is outsourcing or AI the right move for you? Let’s wrap it up.
Outsourcing in the insurance industry or AI, what to choose?
When I first worked with an insurer experimenting with BPO, I saw the relief on their team’s faces when claims backlog finally cleared, and calls no longer piled up unanswered.
Years later, when AI tools entered the mix, I watched another team go from constantly “catching up” to being permanently ahead – serving policyholders faster than they ever thought possible.
The lesson was clear: it’s not about choosing people or technology. It’s about combining both in a way that works for your business.
The main takeaway from this guide is simple: both insurance business process outsourcing and AI-driven solutions have their place.
In 2025, insurers can’t afford to ignore efficiency, scalability, or customer experience. That’s why many are combining traditional insurance BPO with AI-powered tools, creating a hybrid model that maximizes value.
Is it worth it? Absolutely.
Outsourcing reduces costs, speeds up turnaround times, and lets your team focus on strategic work. AI takes it further, handling repetitive tasks instantly, scaling infinitely, and operating 24/7.
Together, they provide the flexibility insurers need to thrive in a competitive market.
If you’re considering the shift, think of outsourcing and AI not as an either/or, but as a partnership. Human expertise and machine efficiency can complement each other, creating a smarter, leaner operation.
And if you’re looking to scale customer conversations, reduce costs, and deliver always-on service, Strada might be the partner worth exploring.
Get a demo and see how insurance-specific AI agents can transform your front office.
Table of Contents
Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
Start scaling with voice AI agents today
Join innovative carriers and MGAs transforming their calls with Strada.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.