Insurers in the UK have been subject to many changes, challenges and ongoing concerns due to COVID-19, changing legislation and expectations, and industry evolution. This makes sourcing the right partner for your business an essential strategy for improving operational efficiencies, developing talent and unlocking growth potential.
As global trends continue to reshape the UK, the broader world, and how we do business locally and overseas, many insurers are considering outsourcing to increase support and successfully manage claims. Gordon Vater, Gallagher Bassett Director of Loss Adjusting and Claims Consultancy in the UK, shares the benefits and best practices of partner sourcing and how they can improve insurer outcomes.
Q: In what ways can insurance insurers benefit from partner sourcing claims management?
For UK insurers looking to drive cost and operational efficiencies, outsourcing segments of their claims management services can open the door to wins across their business. Commissioning a specialist team to handle segments of your claims process can also reduce risk while offering a flexible and cost-effective way to respond to peak and valley periods of demand. Some insurers elect to outsource their high-frequency, low-severity claims to a TPA partner. Others benefit from outsourcing all the claims in a particular line of business or practice area to a TPA partner. Additionally, partnering with a TPA can yield several benefits for insurers electing to exit a particular book of business.
Q: How does having the right TPA partner help an insurance insurer unlock growth options?
Unlocking the value of outsourcing requires a collaborative relationship that respects the unique needs of each business. You also access a local partner who knows your business, clients and the local landscape. Partnering with dedicated TPA experts provides specialised service and support to enhance data analysis while simultaneously expediting the prioritising and finalising of claims. A focused claims management approach to risk and regulatory change delivers efficiency through better oversight to streamline the claims management process, reduce the total cost of risk and secure better outcomes for all involved. It enables the insurer to enter new states and new lines of business while being entrepreneurial and prepared to effectively manage claims that arise.
Q: What risks do businesses face if they ‘cut corners’ when selecting a new partner?
When searching for the right outsourcing partner, the importance of aligning culture and the talent retention process cannot be underestimated. From directing new projects to supporting or managing portfolios, it’s vital to have a partner who understands your clients, values and products and will support the business’s sustainability. If an insurer cuts corners and selects a new partner who does not align with business objectives, it can cause a negative ripple effect across your organisation. Specifically, poorly fitted partners and processes can result in a deterioration of culture and retention as well as causing harm to recruitment. At GB, we make sure our people integrate as an extension of every insurer’s team and go-to-market strategy from day one to help expand resources and support higher talent retention.
Q: What advice do you have for businesses looking to onboard a new partner?
If you are debating whether to outsource, considering all the costs you are currently incurring in addition to the usual benefits, equipment and other overheads is important. I also encourage you to include ongoing investment in systems and innovation, compliance costs, recruiting, turnover and training. It’s easy to fall into the trap of focusing on claim handling expenses as a primary basis for evaluation. Take time to understand your strategic requirements beyond the questions of who can do the job and at what cost. A partner’s analytic approach to factors like duration, litigation rate and reserving combined with their ability to articulate how they can deliver better outcomes will help you decide if they are a good match for you.
Q: How does GB tailor its services to support insurers in the current market?
We know that you need to be fully integrated into the business operations to unlock the full value of a partnered claims model. It’s paramount to establish a collaborative relationship with support teams to successfully interact with insureds, agents, brokers, law firms, medical professionals and others. Our approach to partnered claims solutions leverages the efficiency of our proprietary systems, people and processes to deliver a consistent, benefit-driven experience that makes our people feel like a natural extension of the insurer’s team.
Q: How does GB continue to innovate for insurer partners in an increasingly complex environment?
Gallagher Bassett was one of the first companies to offer the TPA model in several countries, so you can rest assured that we understand the outsourced claims management landscape. Our suite of analytics tools provides stunning clarity wherever your focus, from individual claims to underwriting business units, so that insurers can more accurately assess and control the total cost of risk. Our specially trained industry experts guide our partners through today’s complex insurance environment allowing our insurers to focus on profitability by growing their core business.
Connect with our experts
Gordon Vater, Director of Loss Adjusting and Claims Consultancy at Gallagher Bassett UK, is an expert in insurers, TPAs, consultancy and loss adjusting. Connect with Gordon on LinkedIn or via email for a confidential discussion about your business objectives and the benefits of partner sourcing to discover how we can help you.
