From raging wildfires to disastrous floods, the frequency of catastrophic events has grown, and it is time for the global community to be on their toes more than ever and start preparing for natural disasters.

Let’s talk about the 2025 Los Angeles wildfires—a prime example!

According to the last estimate, the economic toll of the wildfires was expected to exceed $40 billion. If that happens, it will be one of the most expensive wildfire events in the U.S.'s history.

When such massive damage overtakes a part of the world, it pressures insurance agencies. They are left to deal diligently with a flood of claims, client queries, and operational pressure. However, such incidents can be extremely overwhelming, especially for small insurance agencies. Their limited resources, staff shortages, and logistical hassles can restrict their ability to provide timely assistance to their customers What’s the solution to tackle such a situation? Outsourcing! Wondering how?

Read this blog further to discover how outsourcing can help insurance agencies, big or small, to stay firm during natural disasters and continue to satisfy clients and sustain their trust in them.

The impact of natural disasters on insurers

Small and mid-sized insurance firms struggle the most after a natural disaster has created havoc. Their clients need assistance to recover from the trauma and feel financially strong. While policyholders associated with large insurance companies are certain of the prompt assistance and clearance they will get, small agencies struggle to make their customers feel the same way.

Multiple challenges come knocking on the doors of small agencies. Here are some -

• Surge in claims: The more areas or people are affected, the higher the claims. Small agencies lack the workforce and technological infrastructure to manage the influx efficiently. The long process requires patience and alertness; one person cannot provide multiple claims.
• Client inquiries: Less or more, clients get anxious about their claims during such times. They want to know the status multiple times to feel at ease. However, slow progress or unanswered calls can frustrate the clients, encouraging them to break ties with the agency.
• Operational disruptions: Due to skyrocketed claims, existing staff and systems can feel overwhelmed. Because they cannot handle a surge, small agencies can struggle with slow response times and incomplete claims processing.

Moreover, increases in claims require careful organization and real-time access to data. Small agencies can struggle with claim tracking if their systems are outdated and don’t integrate well. There are also gaps in the coverage verification and timely update notification to clients.

The pressures mentioned above highlight smaller insurance firms' vulnerability when hit with major natural disasters. The risk of operational bottlenecks and unhappy clients can put a question mark on the agency’s reputation long after the event has passed.

How outsourcing can help insurance agencies during natural disasters

When a disaster strikes, insurance agencies need to act quickly. To help them do so, outsourcing can provide the assistance and expertise needed to manage claims efficiently. Let’s discover how outsourcing can be a game-changer and a need for any agency during the time of crises -

1. Improved claims processing

Insurance agencies look for specialized support for claims processing during natural disasters, and outsourcing provides exactly that. Insurance managers can quickly and efficiently handle many claims by partnering with business process outsourcing providers.

LA wildfires reports by Fairtrade Outsourcing showed how BPO solutions helped a major insurance agency process 1000+ claims in just 2 days.

When you outsource the initial stages of claims intake and document verification, you see a rapid turnaround, which isn’t possible with limited in-house teams. Doing so allows your internal teams to focus on more complex aspects of claim adjustment.

2. 24/7 client support and customized assistance

Natural disasters place policyholders in a complicated and anxious mental state. They are always on their toes and behind you, waiting to hear the status of their claims or receive guidance on moving forward to another step.

Outsourcing call center support is the right choice in such a situation. This way, you can provide 24/7 client support to your policyholders, ensuring they have timely access to information and updates around the clock. This continuous support is crucial during emergencies because that is when your clients are in maximum distress.

The personalized nature of outsourced client support helps make your clients feel heard and valued. When clients are dealing with the mental and emotional stress brought on by a disaster, they appreciate the reassurance of an alert and informed agent who also provides timely information about their claim.

3. Enhancing efficiency through scalability

Small insurance agencies seek scalability during a disaster. By partnering with an outsourcing provider, they can quickly speed up operations to meet demand. The third-party helps insurers tap into their global talent pool and implement additional resources wherever required without imposing the need for long-term commitments or overhead costs.

Preparing your agency for future natural disasters

For insurance agencies, surviving and thriving during a natural disaster requires proactive preparation.

What all is needed to be proactively prepared?

Comprehensive disaster recovery plans outline a clear action plan for handling claims, client communication, and data management during crises.

One of the most crucial steps in preparing for natural disasters is hiring experienced outsourcing providers with the expertise and resources required to handle large-scale claims processing.

Additionally, having an outsourcing partner in place ensures that your agency is not disturbed by sudden spikes in claims or operational disruptions. By incorporating outsourcing into their disaster planning, insurance agencies can improve their operational readiness and the ability to respond efficiently and effectively during emergencies.

How can FBSPL be your ideal outsourcing partner?

A leading outsourcing partner, FBSPL specializes in claims management for insurance companies. Here’s why -

• Service offerings include claims intake, documentation verification, support, and more.
• The team’s proven record includes helping insurance companies efficiently manage large volumes of claims, especially during disaster events.
• Solutions are customizable and allow agencies to scale operations as per their need and demand.
• Strong emphasis on data security that ensures all sensitive information remains protected during crises.

Future-proof your agency: Outsource for unmatched resilience and client satisfaction during natural crises

It’s high time to be prepared for what can only be guessed. Don’t wait for the next disaster to catch you off guard.

As natural disasters like the 2025 LA wildfires continue to increase in frequency and severity, it has become crucial for agencies, specifically the small ones, to prepare themselves for these challenges and more. You can bolster your services during emergencies by improving your in-house operations or exploring outsourcing support and solutions.

Outsourcing to FBSPL will enable you to offer strategic solutions to help insurers handle the intense demands of claims processing, client support, and operational continuity during calamities. It also equips agencies to manage key functions efficiently, provide exceptional client service, and safeguard their reputation during the overwhelming demand.