Outsourcing can lift competitive edge: third-party claims manager
Third party claims manager Gallagher Bassett has urged group life insurers to consider “strategic outsourcing” as a tool for lifting business efficiency and have an edge in the market.
National Manager for Group Insurance Operations Trina Buckley says in a competitive market, cost control is a critical factor and strategic outsourcing to a reputable third-party claims services administrator ensures access to corporate governance practices that align with industry standards.
“Claims management providers, with their in-depth understanding of insurance contracts, are well-equipped to manage and enforce contractual compliance effectively,” Ms Buckley said.
“Partnering with an experienced provider that can meticulously monitor contracts and maintain compliance, safeguards insurers’ interests and allows them to focus on crafting comprehensive insurance solutions.”
For insurers looking for a strategic partner, four key factors must be taken into consideration, Gallagher Bassett says. They are cost control strategies, corporate governance, contractual compliance and new product offerings.
Ms Buckley say corporate governance is the cornerstone of any successful insurance program.
“Strategic outsourcing to a reputable third-party provider ensures access to award-winning corporate governance practices that align with industry standards,” she said.
“Such providers have a proven track record of upholding ethical business practices, accountability and regulatory compliance.”
She says employee benefits is a competitive business, one with new entrants or new offerings from competing insurers emerging regularly.
“It is crucial that your operational team can administer any new product offering or service to remain relevant,” Ms Buckley said.
“Constraints from system capabilities can put you at risk of being usurped by new offerings or a reduced margin if operational efficiencies are not maintained.
“A versatile platform that can deliver new self-service or efficiencies in data gathering is essential for staying competitive when competing for new business.”