Sourcing the right partner for your business can prove to be an essential strategy for improving operational efficiencies, developing talent, and unlocking growth potential.
As global trends continue to reshape our world and how we do business, many carriers are considering outsourcing to increase support and successfully manage claims. We spoke with Caryn Siebert, Vice President for Carrier Practice, to understand the benefits and best practices of partner sourcing and improving carrier outcomes.
Q: In what ways can insurance carriers benefit from partner sourcing claims management?
For carriers 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 carriers 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 carriers electing to exit a particular book of business.
Q: How does having the right TPA partner help an insurance carrier unlock growth options?
Unlocking the value of outsourcing requires creating a collaborative relationship that respects the unique needs of each business. Partnering with dedicated TPA experts provides specialized service and support to enhance data analysis while simultaneously expediting the prioritizing and finalizing of claims. A focused claims management approach to risk and regulatory change delivers efficiency through better oversight to streamline the claims management process, reduces the total cost of risk, and secures better outcomes for all involved. It enables the carrier 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 is vital to have a partner who understands your clients, values, and products and will support the business’s sustainability. If a carrier cuts corners and selects a new partner that does not align with its business objectives, it can cause a negative ripple effect across the organization. Specifically, poorly fitted partners and processes can result in a deterioration of culture and retention as well as cause harm to recruitment. At GB, we make sure our people integrate as an extension of every carrier’s team and implement a 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, make sure you consider all of the costs you are currently incurring in addition to the usual benefits, equipment, and other overheads. Do not overlook ongoing investment in systems and innovation, compliance costs, recruiting, turnover, and training. It is easy to fall into the trap of focusing on claim-handling expenses as the primary basis for evaluation. Take the 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 carriers in the current market?
We know that you need to be fully integrated into the carrier’s business operations to unlock the full value of a partnered claims model. It is 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 carrier’s team.
Q: How does GB continue to innovate for carrier 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 is, from individual claims to underwriting business units, so that carriers can more accurately assess and control the total cost of risks. Our specially trained industry experts can guide our partners through today’s complex insurance environment and allow our carriers to focus on profitability by growing their core business.
Connect with our experts
Caryn Siebert, Gallagher Bassett US Vice President for Carrier Practice, is an expert in claims, legal and risk management strategic advice. Connect with Caryn 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