Keeping pace with the ever-evolving technology landscape and data maintenance requirements can be challenging and costly for MGAs and PAs but is critical to success.
So, how does a strategic partnership create advantages for MGAs and PAs?
Choosing to partner with a third-party administrator (TPA) allows MGAs and PAs to gain access to advanced data analytics platforms without requiring the capital and additional resources to establish or maintain them. MGAs and PAs will no longer have to operate in isolation, with the ability to access more knowledge, innovation, and expertise.
Four key advantages of engaging with a TPA include reduced costs and increased capacity, improved data accuracy and reinforced trust in partnerships, improved business decisions to reduce risk, and enhanced growth and profitability. Let’s explore these further.
- Reduced costs and increased capacity
The upfront and ongoing costs of maintaining technology infrastructure can place a strain on MGAs and PAs but are essential to business success. In the same way, time and resources are required to upskill technical staff or hire experts to ensure a business can reap the full benefits.
Engaging a TPA can reduce the cost of implementing data analytics on a long-term basis and fill the gap for required expertise. By alleviating the pressure of implementing effective data analytics, MGAs and PAs can focus on other priorities, ultimately improving capacity and business decisions.
- Improved data accuracy and reinforced trust in partnerships
MGA and PA markets are often specific and require unique, personalized insights to inform business decisions. One of the advantages of utilizing a modern data analytics platform is the access to millions of data points across a broad scope of customers. Extracting specific insights for a particular market from the large pool of data will greatly improve the accuracy of information.
With swifter access to accurate data, clearer insights can be drawn, leading to improved decision-making, delivery of services, and the ability to provide superior outcomes for your business.
- Better business decision-making and reduced risk
Mitigating risk is an important focus for MGAs and PAs, and data analytics platforms can aid in this process. RMIS platforms can analyze a wide scope of data, allowing for correlations to be drawn, and common patterns to be identified from millions of claims. This can deliver more accurate predictions on individual claims, markets, and consumer trends, allowing MGAs and PAs to make better-informed business decisions to strategically grow and capitalize on trends.
With greater availability of data and a team of analysts able to provide insights and rationale, MGAs and PAs will be equipped with a greater understanding of situations surrounding their markets, and, in turn, more control. In the same way, if the collection, analysis, and storage of this data are managed via a TPA, like Gallagher Bassett, MGAs and PAs will have the agility and flexibility to focus on emerging risks.
- Growth and Profitability
Access to convenient and precise data creates meaningful and actionable insights to improve business performance. This can transform the ability to create new products and services while enhancing existing product lines. In a competitive field, data insights can also offer firsthand knowledge of market opportunities and customer behaviors, providing the tools to gain new leads while also identifying outcomes based on historical data, which can ignite growth for MGAs and PAs.
Contact us today to see how partnering with Gallagher Bassett can help your business overcome technology and data barriers for strategic growth.