Outsourcing claims management to a third party can be a novelty for carriers, but the dynamic arrival of 2022 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 while also offering a flexible and cost-effective way to respond to surge periods of demand.
According to Mike Hessling, Gallagher Bassett North America’s CEO, the TPA model streamlines the claims management and finalization processes, while the data collected during the claims management process allows for prompt analysis of risk factors.
He explained that “The value comes from having ready access to specialist expertise and additional manpower, which enables underwriters to analyze risk and finalize claims quickly and easily.”
“Most of all, its success hinges on providing a flexible service with support tailored to the needs of each carrier. Otherwise, taking a ‘one-size-fits-all’ approach generally leads to a ‘one-size-fits-none’ outcome.”
The TPA difference
The TPA model means that your firm benefits from:
- Laser-focused claims management.
- Improved control over claims outcomes.
- Protected customer relationships and brand reputation.
- Reduced overheads and costs.
- Specially trained industry experts to guide you through today’s complex insurance industry.
Expert tips for success
Hessling offers the following tips for successful outcomes to insurance carriers who are preparing to outsource their claims management services:
1. Lead with strategy
Take the time to understand your business’s strategic requirements and find a partner who is a good fit. Do you want to demonstrate a 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 extend your client base or maintain your current claims portfolio?
2. Focus on outcomes
Look beyond fees. Find a claims management partner who can help you achieve superior outcomes in areas such as duration, litigation rate, and reserving.
3. Consider total cost
If you are debating whether to outsource or employ 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 into your business, so make sure you are heading in the same direction long-term. Examine their track record and have a candid discussion about their vision, direction, and plans.
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 that we understand the outsourced claims management landscape.
Our team is as passionate about your firm’s customers and corporate reputation as you are. We know that to unlock the full value of a partnered claims model, you need a collaborative relationship that reflects the way you prefer to interact with insureds 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 only from the efficiency of our systems, people, and processes but also from the way we apply them to individualize support to each carrier. Our approach is designed to give insureds 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 our team to find out how we can tailor our support to your team’s specific needs.
