You’ve decided to partner with a third-party administrator (TPA), but what exactly do you need to proceed with confidence?
Streamlining your claims management service through a TPA is a proven solution to many of the industry’s biggest challenges. From a gap in market knowledge and the difficulty of navigating recruitment in the age of the Great Resignation to the capital and time constraints associated with transforming your technological capabilities, there are a number of challenges that the right partner can help you overcome.
The decision to secure a partner may be an easy one, but knowing what to look for when choosing your TPA is a different challenge entirely. To reduce your risk when partner-sourcing, here are our top five key considerations:
1. Innovation Plus Tried-and-Tested Analysis
There are many factors that impact claims management. Leveraging technology and innovation can accelerate the claims life cycle while reducing potential disruptions.
Intelligent and efficient technology is an essential part of the modern carrier’s tool kit and a non-negotiable for a prospective TPA.
While technology can accelerate your claims life cycle by providing real-time data and streamlined operational efficiencies, it is important to also partner with a TPA who can analyze the data and deliver strategic insights that power superior outcomes.
Taking advantage of technology and partnering with an experienced claims manager reduces errors. In addition, timely access to relevant risk management data, supported by valuable insights from your TPA, ensures that partners can make informed and accurate decisions.
2. A Staff of Quality Claims Professionals
One of the greatest benefits of partnering with a TPA is having a cost-effective staffing solution that can adapt to the ebbs and flows of your business.
Your partner will become an extension of your team and brand, which makes it important to select a TPA who is aligned with your strategic objectives. Look for a partner who can grow with you over time, deliver consistency for your insureds, and remain market-ready with experienced talent. Similarly, your clients can be assured that they can build a long-standing relationship with their carrier, trusting them to handle long-term, complex, or contentious claims.
Evaluating the current and future capabilities of your TPA allows you to make more informed decisions. The right partner for you will be one that you can trust as a safe pair of hands for your business and insureds, no matter the circumstance.
3. Best-in-Class Capabilities
Legacy IT systems are a challenge faced by carriers of all sizes. Establishing and maintaining the IT infrastructure that supports a business can be cost prohibitive (and time consuming) for many, not to mention the capital required to keep pace with frequent technological advancements.
You can mitigate the expense and avoid the drawbacks associated with outdated IT systems by choosing a partner with best-in-class digital experience infrastructure, benchmarking, and dashboard capabilities. Access to a RMIS like Gallagher Bassett’s award-winning LUMINOS platform means you can focus investments of time and money on strategic business growth.
Since technology is ever-evolving, the same must be true for your partner’s capabilities. Gallagher Bassett is committed to delivering exceptional outcomes through continued investment into our platforms, technology, and analytics.
4. Strong Claims Leadership
Selecting the right partner requires much more than adding more supporting staff. Partnering with a TPA who has the dedicated claims management focus, industry experience, and resources to meet the needs of your business and clients will help you maximize the return on your investment.
The level of service and expertise your clients receive will reflect on the performance and reputation of your business, which is why it is important to align with a TPA who has the industry expertise to proactively identify and mitigate issues on your behalf.
Be sure to assess any potential partner’s contract renewal rate and ability to deliver high-quality claims management and customer satisfaction, alongside their approach to retaining, training, and attracting top talent. Partnering with an experienced team that has a unified vision will provide a mutually beneficial outcome.
5. A Growth Partnership
Unlock strategic growth opportunities with the right TPA partner. Business growth may come in the form of expansion into the geographic regions and the product offering supported by your TPA.
Alternatively, you could see improved customer satisfaction thanks to effective claims management delivered by your partner, leading to increased consumer confidence in your brand. Perhaps you are looking to free up some of the capital you currently have tied up in an underperforming in-house claims function or need access to performance tools and analytics that enable smarter business decisions.
Ideally, your partner will enable you to capitalize on all these opportunities for growth. Take special note of the reputation and expertise of your TPA, its track record of delivering demonstrably superior outcomes, and its investment into innovation and talent, and you will put yourself in the best possible position to succeed.