How does the change of the German data privacy law facilitates outsourcing in the Insurance Industry?
By Michael Mitterer, Managing Director of Life Insurance, Capita Life & Pensions
Due to recent changes in the German Criminal Code regarding the transfer of private information to third parties, insurers will find it much easier to outsource their administrative processes to external providers in the future. The digital transformation and greater use of technology among businesses has made this change necessary according to the German lawmakers.
In line with the above changes, outsourcing can now support objectives of many businesses such as bringing efficiencies due to bundling of activities, streamlining organisation’s processes and the use of new technologies and robotics.
A common example is the transition to a digital self-service and the optimisation of customer channels, thus making customer journey more seamless and enhancing the respective customer experience.
A further advantage of using external service providers is its impact on quality as outsourcing partners can add significant value by reducing processing times and increasing customer satisfaction.
Obviously, there are risks that need to be managed when making the decision to work with outsourcing partners and companies need to make clear strategic decisions about what should be outsourced and why and also managed the operational risks particularly during the transition time.
Overall, the legal changes in the German market will create great opportunities businesses can now take advantage of. The question is about selecting the right partner who will provide tailored services to client’s needs and make the outsourcing process as successful and sustainable as possible.
More details can be found here