A closed book is a premium paying policy that exists on paper and is not sold anymore by a life insurance carrier. Closed books can be generated when unprofitable products are discontinued or due to an acquisition or merger when certain policies are laid to rest.
Closed book management is an important issue for insurers including for regulatory reasons, but one that they need to manage at the lowest possible cost. For an industry that is focused on customer service with efficiency, outsourcing closed books management is a highly attractive option.
However, insurers also need to employ the right insurance outsourcing model to maximize benefits. Early fixed cost models have faltered, as a reduction in portfolio sizes coupled with a shrinking knowledge base due to attrition, has caused a negative perception among agents and customers alike. The need of the hour is to modernize legacy management and increase operational efficiency while maintaining a low cost profile.
BPM partners experienced in handling legacy products for insurance services are able to do this, including lower IT costs. They also help insurers up the level of customer service by offering cross-sell and up-sell opportunities. What is more, by instituting best practices and replacing legacy platforms with modern platforms in collaboration with a BPM partner, insurers can improve productivity while standardizing business processes.