Could a third-party administrator (TPA) be the solution for overcoming your business disruptors?
Yes, it’s a brave new digital world where the competition for consumer loyalty is fierce and the hurdles to customer acquisition (not to mention retention) can be daunting, to say the least. The challenges are very often and very real. So, where does a TPA fit into the equation? To answer that question, let’s take a look at the services a TPA might offer.
- Daily Claims Adjusting – TPAs can quite literally replace the need for an internal claims department. A good TPA can handle claims of just about every kind, from first-notice-of-loss to completion. They can do the time-consuming tasks of: documenting the loss details, interviewing the insured and other parties, preparing damage estimates, communicating with the policyholder, analyzing policy language any many other claim tasks.
- Subrogation Recovery – In many cases, where the services of an attorney are not needed, a TPA will handle subrogation. Having a TPA assist with subrogation not only minimizes legal department expenses and speeds up subrogation recovery times, but also offers essential investigative, administrative, and customer service support that facilitate more positive outcomes overall.
- CAT Claims Adjusting – Few large carriers have the in-house staff to handle the influx of claims that occur due to sudden, catastrophic events. TPAs typically have a pool of independent adjusters to call upon that are able to quickly respond to a disaster.
There are a number of other tasks TPAs provide that allow carriers to focus on their internal corporate objectives and the benefits are tangible.
Benefits of Using a TPA
- Reduced Costs – For many carriers, the cost of having an in-house claims department can be burdensome. Outsourcing claims adjusting, CAT claims handling and some of the subrogation tasks that do not require an attorney can hugely benefit your bottom line.
- Access to Advanced Technology – Today’s consumer is not the only thing being affected by the digital technology explosion. AI technology and advanced data analytics are transforming the insurance industry by providing key insights for underwriting, consumer behavior, and enhanced interactive channels via web portals, mobile apps and other digital outlets. TPAs who are at the forefront of emerging technologies are able to streamline adjusting processes.
- Enhanced Customer Experience – A TPA offers a valuable buffer between policyholders and carriers and can offer additional resources that make for not only better customer service, but a better customer experience in general.
- Quality Control / Security – A good TPA will be able to provide comprehensive data security, as well as quality assurance metrics, cost analysis, and key performance indicators for the services being provided on your behalf. Having an external reporting mechanism for this critical data is invaluable in its’ ability to shape the direction of your business strategy for the future; not to mention the measurable results and true accountability it offers.
As the insurance industry continues to evolve, gaining a competitive advantage means evolving alongside it. Finding the right TPA partner can help you transform your business operation into a well-oiled machine.
If you’d like to learn more about how TPA services can be the solution to many of your business disruptors, contact Eberl today. With over 30 years of being there when and where our partners need us, we’re redefining claims excellence by providing solutions for any claims need.