Changes, challenges, and ongoing concerns: if there’s one thing Australians have learnt over the course of the COVID-19 pandemic, it’s that nothing is certain.

From changing legislation to industry operations, sourcing the right partner for your business has never been a more essential strategy for improving operational efficiencies, developing talent, and unlocking growth potential.  

One thing that is for certain, is that trends, both local and global, will continue to reshape business operations across every corner of the globe. In response to these waves, insurers everywhere are turning to outsourcing to increase support and successfully manage claims. Damien Gilhooley, General Manager Integrated Claims Solutions, shares why the world is choosing to partner source, including benefits, best practices and how they can improve insurer outcomes.   

Q: In what ways can insurers benefit from partner sourcing claims management? 

Partner sourcing allows you to tailor add value to your team, for your claimants, by providing a specialist team to handle segments of your claims processes. Driving cost and operational efficiencies, outsourcing individual segments of your claims management services allows you to direct your focus where it’s needed most. Some insurers 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. Partnering with a TPA can yield several benefits for insurers electing to exit a particular book of business. 

Q: How does having the right TPA partner help an insurer unlock growth options? 

Unlocking the value of outsourcing requires an all-in relationship that respects the unique needs of each business – a local partner who knows your business, clients and local landscape just as you do. Partnering with dedicated TPA experts opens the door to a focused claims management approach to risk and regulatory change delivering efficiency through better oversight and extensive industry experience streamlining the claims management process, reducing the total cost of risk, and securing better outcomes for all involved. It enables the insurer 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’s vital to have a partner who understands your clients, values, and products and will support the business’s sustainability. If an insurer cuts corners and selects a new partner who does not align with business objectives, it can cause a negative ripple effect across your organisation. Specifically, poorly fitted partners and processes can result in a deterioration of culture and retention, as well as causing harm to recruitment. At GB, we make sure our people integrate as an extension of every insurer’s team and 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? 

Unsure whether to outsource? The first step is to consider all the costs you are currently incurring in addition to the usual benefits, equipment, and other overheads is important. I also encourage you to include ongoing investment in systems and innovation, compliance costs, recruiting, turnover and training. It’s easy to fall into the trap of focusing on claim handling expenses as a primary basis for evaluation. Take time to understand your strategic requirements - what they look like now but also what they could look like over the next few quarters - 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 insurers in the current market? 

At Gallagher Bassett, we know that you need to be fully integrated into the business operations to unlock the full value of a partnered claims model. It’s paramount to tailor a collaborative relationship with partners 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 your team. 

Q: How does GB continue to innovate for insurer partners in an increasingly complex environment? 

Gallagher Bassett has always been at the forefront of the industry. As one of the first companies to offer the TPA model in several countries including Australia, you can rest assured that we understand the outsourced claims management landscape – and how adaptable you need to be in it. Our suite of analytics tools provides clarity wherever your focus, from individual claims to underwriting business units, so that insurers can more accurately assess and control the total cost of risk. Our specially trained industry experts guide our partners through today’s complex insurance environment allowing our insurers to focus on profitably by growing their core business. 

Connect with our experts

Damien Gilhooley, General Manager Integrated Claims Solutions at Gallagher Bassett Australia is expert at identifying, developing and integrating industry leading solutions capable of internal application for existing and prospective clients. Connect with Damien 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 you. 

Blog Author

Damien Gilhooley

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