Outsourcing insurance claims - why you should consider it

Everyone in the insurance industry is familiar with it: customers not paying their insurance premiums. The solution is often debt collection/insurance debt collection, but should insurance companies handle the process themselves? Or should you outsource the process to a debt collection company or lawyer?

We've put together a number of tips on why we think you as an insurance company should outsource your debt collection cases - and what you need to be aware of when you as an insurance company entrust your customers and debt collection cases to a lawyer or a debt collection company.

There can be many benefits to outsourcing your debt collection cases to an external partner. In this article, we'll give you 5 reasons why you should consider a partner who specializes in the field and understands the complexities of insurance claims.

1. Minimize your resources

Outsourcing insurance claims to a debt collection partner reduces the need for internal resources for both large and small cases. This frees your employees from the collection process, so they only need to forward cases, answer questions and post payments.

Debt collection can be lengthy and involve several stages, from reminder letters to legal proceedings. By outsourcing, you ensure that your internal resources are used in a more efficient way. This allows your employees or colleagues to focus on other important tasks, such as the larger and more complex claims. In our experience, many insurance companies often don't prioritize the small cases that actually have great value on the bottom line. By letting an external partner take care of these smaller cases, you ensure that no potential is lost.

2. Easy and automated handover

Many debt collection companies, such as Collectia, offer automatic assignment of debt collection cases based on the criteria and requirements you set as an insurance company.

For example, if a case is older than a certain time period, it will automatically be handed over.

This ensures that all cases are handled consistently without employees having to decide when bad payers should be handed over to debt collection.

3. Professional, compliant and consistent case handling

Many companies, including insurance companies, don't always handle their debt collection cases consistently and can struggle to meet internal and external requirements and deadlines.

Does your company always meet all deadlines and requirements? Do you consistently handle your cases on time?

With a professional debt collection partner, you ensure consistent and compliant handling of your cases. All deadlines and requirements will be met and the correct interest and fees will be applied.

As an insurer, you can also influence what actions the debt collection company should take and when. This gives you a great advantage as you get consistent treatment and can predict the next step in the process.

4. Even small amounts of debt collection can pay off in insurance debt collection

At Collectia, we believe it's worth emphasizing why even small volumes of debt collection cases can be worth investing in, especially when it comes to insurance debt collection.

While it may seem that small cases aren't worth spending time and resources on, it's important to remember that these cases can have a significant impact on the bottom line over time. Many insurance companies operate with repeat customers and long-term relationships. Handling even the smaller cases with care and efficiency can help maintain these relationships and secure future revenue.

Furthermore, small amounts of debt collection cases can add up to a significant amount when accumulated over time. By outsourcing even these smaller cases to a professional debt collection partner, the insurance company ensures that valuable resources and potential revenue streams are not lost.

In short, focusing on even the smallest debt collection cases can be an investment in future financial stability and security for the insurance company.

5. Full-service debt collection: From reminder to legal processing of objections

Many debt collection companies can manage the entire out-of-court process, including invoicing, reminder letters and the collection process, all the way up to the bailiff court. However, many cannot handle the judicial process in connection with objections or disputed cases. This is important to be aware of.

At Collectia, we work closely with Verus Advokatanpartsselskab, specialized in insurance claims with objections. By choosing a full-service debt collection company, you get a partner who can automatically take the case forward - from invoicing to reminder process and possibly on to legal debt collection.

This eliminates the need to monitor payments and make decisions about when to move the case to the next phase and what actions to take, if any.

What should you be aware of when outsourcing insurance debt collection?

When it comes to outsourcing debt collection as an insurance company, there are undoubtedly many benefits to be gained. However, there are also important considerations to make before working with an external partner, whether it's a debt collection company or a debt collection lawyer.

It is crucial to ensure how your customers will be treated, what legal and extrajudicial steps will be taken against them, when it is appropriate to hand over a case to debt collection and whether the collection partner has experience with insurance-related cases. These questions are fundamental to ensuring that customers' rights are respected and that the debt collection process is fair and efficient.

It's also sensible to expect your future partner to be able to document their experience with previous debt collection cases. The debt collection process is complex in itself, but when it involves insurance companies, it becomes even more challenging. That's why it's crucial to choose a partner that has a dedicated team and extensive experience in this specific type of case.

Do you want us to help you?

At Collectia, we have a unique partnership with Verus Advokatanpartsselskab. This means that our comprehensive range of services includes everything from credit assessment, invoice service and reminder procedures to debt collection, legal debt recovery and eviction proceedings. We have extensive experience with all types of insurance claims.

Whether you are a business owner or represent an insurance company, we at Collectia are ready to assist you with your debt collection cases and bring them to a successful conclusion