The insurance and warranty industry continues to evolve, and the role of third-party administrator is expanding. As a result, TPAs are quickly becoming one of the most valuable assets in the business.
As the insurance and warranty industry changes, so has the role of the third-party administrator, or ‘TPA’. For example, many TPAs have recently taken on added responsibilities—acting as risk assessment manager, customer service provider, claims processor, customer consultant, and more. With industry technology continually advancing, customer preferences expanding, and the always-present need for efficiency, TPAs are being counted on for quite a bit.
Taking on the role of admin
For today’s TPAs, customer service now means something different. Many TPAs have been tasked with handling the important role of claims administrator for clients and, as part of that process, they’re expected to keep those clients’ customers happy. In order to best serve both clients and consumers, TPAs need to possess a deep understanding of the industry. Additionally, they need to exhibit claims processing efficiency and be prepared to give proper assistance to customers when needed.
Creating a cost-effective claims process
Clients and customers expect a faster turnaround, largely due to technological advancements and improved processes. And many insurance companies are restructuring to combine job responsibilities specifically to meet those expectations. TPAs have been significantly impacted by these changes, taking on risk management obligations and overseeing claims processing more than ever. In addition to maintaining efficiency, cost-effectiveness is also expected, opening up opportunities for TPAs to innovate.
Keeping up with industry changes
While the entire insurance industry is affected by change, TPAs have recently been impacted more than most. To properly service customer needs, TPAs must be flexible and able to adapt on the fly. And in order to showcase the value they provide, TPAs must be up to speed on industry developments. Ongoing industry training can keep TPAs on top of their game, and leave customers feeling like they’re well taken care of.
Looking to catch up on more ways technological advancements are impacting the insurance and warranty industry? Check out our blog on why we still value a personal touch in an automated underwriting world.