Outsourcing claims management to a third party can be a novelty for insurers, but the dynamic arrival of 2022 and the impacts of COVID-19 in the UK, means this could be the year to look at the options for doing business differently.
Third Party Claims Administrators (TPAs) help insurers, public entities, corporations, and self-insured companies reduce their Total Cost of Risk (TCOR) and secure better outcomes for all involved.
Commissioning a specialist team to handle segments of your claims management process can reduce risk and offer a flexible and cost-effective way to respond to surge periods of demand. For example, the recent Storm Arwen and Storm Barra in the UK as well as other points in the calendar such as travel claims at peak travel periods.
Gallagher Bassett UK’s Director of Loss Adjusting and Claims Consulting, Gordon Vater, explains that the TPA model allows the process for claims management and the finalisation of claims to be streamlined, while the data collected during the claims management process allows for prompt analysis of risk factors.
“In the UK, we see surges in claims over the holiday periods for theft / travel, property damage in winter and even recently due to the pandemic,” he said.
“Having ready access to specialist expertise and additional manpower for our insurers is key to managing this demand,”
“For decades, Gallagher Bassett has provided this expert assistance in the UK, enabling underwriters to analyse risk and finalise claims quickly and easily.”
”The success of such a model hinges on providing flexible, tailored support services for each insurer. In this we see that a ‘one-size ‘fits-all’ approach can lead to a ‘one-size-fits-none’ outcome.”
The TPA difference
The TPA model means that your business benefits from:
- Laser-focused claims management.
- Improved control over claims outcomes.
- Protecting customer relationships and brand reputation.
- Reduced overheads and costs.
- Specially trained industry experts to guide you through today’s complex insurance industry.
- Agility in a business environment where change seems to be a constant.
Expert tips for success
For insurance companies preparing to outsource their claims management services, Vater offers these tips for successful outcomes:
1. Lead with strategy
Take time to understand the strategic requirements of your business and find a partner that is a good fit. Are you looking to demonstrate premium client service or a no-frills, low-cost approach? Are you planning to expand into new industries or lines of coverage? Do you want to grow new clients or maintain your current claims portfolio? When are your surge times and are you prepared?
2. Focus on outcomes
Look beyond fees. Find a claims management partner who can drive superior outcomes on factors like duration, litigation rate and reserving.
3. Consider total cost
If you are considering the difference between outsourcing and employing in-house resources, make sure you consider all the costs, such as ongoing investment in systems and innovation, compliance costs, recruiting, and training. Outsourced partners often pass on the benefits of their economies of scale.
4. Evaluate track record and future vision
Your claims partner will be tightly integrated with your business, so make sure you are heading in the same direction long term. Have a candid discussion about their vision, direction, and future plans and look at their track record.
Why Gallagher Bassett?
Not all TPAs are the same. Gallagher Bassett was one of the first companies to offer the TPA model in several countries, so you can be sure we understand the outsourced claims management landscape. We also have local teams that understand your business, your clients and your competitors.
Our team is as passionate about your company’s customers and corporate reputation as you are. We know that to unlock full value from a Partnered Claims Model, you need a collaborative relationship that reflects the way you like to interact with customers and agents, with a support team that is fully integrated into your business operations.
Gallagher Bassett’s approach to the Partnered Claims Model comes not just from the efficiency of our systems, people, and processes, but the way we apply them to individualise support to each insurer. Our approach is designed to give customers a consistent experience that makes our team feel like a natural extension of their own.
Find out more
Are you ready to commit to change? Start the new year right by adding the value your team deserves. Connect with me to find out how we can tailor the support your team needs.