Here we provide you with some pointers to keep in mind when selecting a TPA.
In today’s global market, many insurance companies are turning to Third Party Administrators (TPAs) in order to uphold efficient processing and handling of claims, increasing better claim outcomes, and maintaining quality customer service. In a fiercely competitive industry like insurance, it then becomes crucial to engage in thorough research before selecting a TPA.
Working with a TPA is beneficial for insurance firms as processing tens of thousands of claims can be a very daunting task. By hiring a TPA, and streamlining all the processes, insurance firms can hope to achieve steady growth and improved efficiency in dealing with their policyholders.
What to look for in a TPA:
For an insurance firm, identifying what kind of services are important to them and choosing a TPA that meets their needs is the way to go. Every TPA offers different kinds of services and it is the insurance firm’s responsibility to ensure that the TPA it selects will be able to handle all the processes assigned to it.
Experience: Only looking at brand names and going by recognition is not enough sometimes. It is important to realize that a TPA with proven industry experience-especially in the kind of services that the insurance firm offers- is the ideal one to choose.
Claims Management System: In this technology-driven world, where automation is leading every industry practice, the insurance industry is not too far behind. It is essential for TPAs to have facilities that make the process of managing claims more efficient. From paperless filing systems to the use of automated claims cataloging software to AI-driven estimation software as well as a smooth communications system, it all boils down to staying ahead of the technological curve.
Customer Service: The insurance industry is a wholly service-based industry. And thus, it is necessary to have the best industry practices when it comes to dealing with customers. Outsourcing claims management also means outsourcing the process of dealing with policyholders. As an insurance firm, it is necessary to have a TPA that hosts seasoned adjustors as well as customer executive teams that can provide unparalleled services to the clients. This will ensure steady growth due to repeat business.
Capabilities of the TPA: Insurance firms are heavily invested in a lot of services that are a part of any claim. From fielding an adjuster for inspection, carrying out mitigation services, as well as managing litigation and subrogation services in cases of frauds and disputes, to internal operations, a TPA should be able to prioritize each task and have people who are capable enough to efficiently carry out all these processes. Having a TPA which has a consultative approach will help in implementing practices best-suited for an evolving business. A TPA which is able to efficiently deal with policyholders, keeping in mind the priorities set by the insurance firm is the ideal one for the job.
Operation Costs: Every TPA has a different pricing system for its services as well as operations. From a profit perspective, it is important for an insurance firm to undergo thorough research and determine which TPA provides them with services that are worth the money and is able to generate steady profits in the long run without charging an excessive fee.
In conclusion, finding the ideal TPA requires careful research and a thorough understanding of the insurance firm’s own needs as a service-oriented business. Having a TPA which works in tandem with the insurance firm’s business plan will result in far-reaching profits and growth for years to come.