Outsourcing Without the Risk. You’ve made the decision to outsource, but how do you outsource with minimal risk?
Outsourcing your claims management service is a tried and tested solution to many of the industry’s biggest challenges. From a gap in market knowledge to accessing top talent, outsourcing streamlines the technical focus to Claims experts, and the resourcing and management of staff, ensuring your business can adapt to market changes with ease and focus on your core capabilities.
The decision to outsource may be an easy one but knowing what to look for when choosing your third-party administrator (TPA) is a whole other ballgame. To reduce your risk when outsourcing, here are our top four suggestions of what you need to look out for.
1. Innovation vs Tried and Tested Solutions
There are many factors that impact claims management. Leveraging technology and innovation can accelerate the claims lifecycle while reducing potential holdups. The adoption of innovative technology has been slow-going industry-wide, with many businesses fearful of losing the value of human connection in the claims management process.
While technology can accelerate your claims lifecycle by providing real-time data and streamlined operational efficiencies, it is important to also partner with a TPA who can provide the strategic insight behind the data to successfully leverage superior outcomes.
Taking advantage of technology and partnering with an experienced claims manager not only reduces errors but timely access to relevant risk management type data, supported by valuable insight from your TPA empowers businesses to make informed and accurate decisions.
2. A safe pair of hands
One of the greatest benefits in partnering with a TPA is having a safe-haven to lean on when your business needs the extra support – such as drawing on increased resources during surge seasons.
Your partner will become an extension of your team, making it important to select a partner who is aligned to your strategic objectives and can grow with your business over time, deliver consistency for insureds and remain market-ready with experienced talent. Similarly, your clients need to know that they can build a long-standing relationship with their insurer, trusting them to handle long-term, complex or contentious claims.
Evaluating the current and future capabilities of your TPA, alongside their strategic vision and succession plan allows you to be confident in your own. The right partner for you will be one that you can trust as a safe pair of hands for your business and insureds no matter the circumstance.
3. Regulatory Compliance
In 2022, organisations are expected to take greater accountability and an elevated stance towards their corporate social responsibility based on government regulations and consumer expectations. By extension, it is therefore important to consider the degree to which the outsourced partner’s ethical and corporate governance aligns with that of your own.
Laws and regulations are constantly changing and TPAs, just like any other organisation, who fail to follow and adapt to compliance changes can find themselves in legal, reputational and financial trouble.
4. Strong claims leadership
Outsourcing to the right partner is so much more than adding another body to the team. Partnering with a TPA who has the sole and dedicated claims management focus, industry experience and resources to meet the needs of your business and clients will see you derive the maximum benefit from the relationship.
The level of service and expertise your clients receive will reflect on the performance and reputation of your business, which is why it is important to align with a TPA who has the industry know-how to identify and rectify an issue before it even arises.
You can tell a lot about a company by the company it keeps. Be sure to assess any potential partner’s contract renewal rate, ability to deliver high-quality claims management and customer satisfaction, alongside their approach to retaining, training and attracting top talent. Partnering with an experienced team that has a unified vision will provide a mutually beneficial outcome.
Ideally, your outsourced partner should deliver tailored added value with aligned essential strategies for improving operational efficiencies, developing talent, and unlocking growth potential.
Connect with our experts
If you’ve made the decision to outsource but aren’t sure what you need from your TPA contact Damien Gilhooley, General Manager Integrated Claims Solutions at Gallagher Bassett Australia. Damien is an expert at identifying, developing and integrating industry leading solutions capable of internal application for existing and prospective clients – connect with Damien via LinkedIn or email.
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