It's no secret: Insurance risk is evolving. As a result, keeping risk management practices up to date must become a priority for third-party administrators (TPAs) looking toward the future.
But expect challenges; this is much easier said than done. A recent Accenture report found that greater volume of data, regulatory demands, legacy technologies, and the increased threat of cyber attacks are all impacting risk management effectiveness.
Fortunately for our TPA crowd, these challenging factors don’t necessarily spell trouble for the industry. But they do require preparation.
Here are two key ways you can set yourself up for success.
Key No. 1: Use data to your advantage.
Big data is only a challenge if you don't know how to leverage it. One great way to improve processes and customer service is by using the massive amounts of available data to optimize claims management automation and upgrade insurance offerings based on established customer patterns and their varied needs.
But to really make big data work in your favor, don't rush it. Instead, slowly integrate this tool into your processes. By being more deliberate in your introduction, you can set your sights on one task at a time and ensure each step is effective.
Key No. 2: Be a consultative partner.
Each and every customer is different. As a TPA, you must play the role of a consultative partner, zeroing in on each customer's individual and specific needs. How? Optimize your insurance offerings by uncovering market trends, and educate customers by passing along what those trends can mean for them. As a consultative partner, you can help end the guessing game customers often play when deciding which insurance options are best for them — earning their trust and loyalty in the process.
The future doesn't have to be scary. TPAs: As you take on the challenges of the evolving risk landscape, focus on a few key areas — data-optimized processes and offerings, and a consultative approach — to create a favorable future.