In insurance BPO market, good service is always expensive. Large BPO companies are able to provide enough support in all aspects. With small agencies’ limited revenue and scale, there is almost no possibility to grow like medium-large-sized agencies. In terms of growth potential, small insurance agencies’ business is negligible to large-scale vendors.
The fact is large BPO companies charge small agencies higher prices than larger agencies, as BPO companies have to assign more experienced people to handle various insurance requests. (This is because larger insurance agencies usually hire more processors and have repetitive & heavy work volume, which will be easier to manage.) Furthermore, small agencies are price sensitive so both parties will be difficult to reach an agreement.