Insurance risk is evolving. For third-party administrators, that means changing how you approach risk management.
Insurance risk is changing rapidly. And with a recent Accenture report identifying greater velocity, variety, and volume of data as insurance pros’ top challenge in risk function effectiveness, the industry’s digital transformation presents an additional set of hurdles to overcome. As a result, new risk management practices are becoming an increasingly prominent focus for third-party administrators.
So, how can TPAs prepare for the changing risk management landscape as they watch it evolve before their eyes? Here’s our first tip:
Add value through a data-backed approach to insurance programs.
While the increase in data may seem daunting, TPAs can harness it to ready themselves for future risk. Start with updating your claims management process by incorporating machine learning-enhanced automation. This, combined with improving product and service options through deeper data insights, will help set you up for long-term success.
But a word to the wise: don’t feel like you have to dive in too quickly. Incorporate these new data analytics into your current processes in simple, manageable steps. Once you’ve optimized one process, then move on to the next.
By tailoring insurance offerings and streamlining the claims process, TPAs can keep customers happy, and better mitigate the challenges that stand in their way.
Want to know more about how the insurance landscape is changing? Check out the ways we think providers can remain competitive during the insurtech revolution. And be sure to stop by the blog soon to get our next tip on how to prepare for future risk!