Altus Insurance whitepaper spreads - Flipbook - Page 30
On the branch line –
the TPA perspective (cont.)
There are also new models starting to emerge in
the world of loss assessors. Typically operating in
property claims, these are third parties that act
for a policyholder in assessing and negotiating a
claim with their own insurance company.
Extending this approach to motor claims, The AA
launched the Accident Assist proposition in 2021
– under their breakdown cover. AA customers can
seek support from the AA to manage interactions
with their motor insurer, should they need to make
a claim following an accident. This does enable
Can TPAs become transformation partners
for insurers?
Historically, the main bene昀椀t and motivation for using
TPAs has been to deliver cost savings, but insurers
who continue to view their claims partners in this
narrow fashion are ignoring the strategic bene昀椀ts
that can be secured when real integration happens
with TPAs.
As we have seen, TPAs are starting to digitise and
modernise their services in line with their insurer
partners and this has to be encouraged. But this
alignment must go beyond digital – all parties must
be aligned with the claims philosophy the insurer is
pursuing, as outlined in chapter 2.
True and lasting transformation in claims is
dependent upon TPAs having the ability to align their
operations with their insurer partners while adopting
the same culture of improvement. This requires a
degree of integration between the parties, a critical
eye on what the key measures of success should be,
and surfacing management information transparently.
At 昀椀rst glance, this may seem like a signi昀椀cant and
tricky leap for insurers to make but the level of
integration required with TPAs is no di昀昀erent to that
already secured with the various so昀琀ware houses
that serve the sector.
the AA to bring vehicle repair activities into its own
repair network, and this model potentially brings
its own cost challenges for insurers who are losing
some control of the process.
The question insurers and TPAs need to ask is,
why would customers prefer to be represented by
a third party when navigating the motor claims
process, and what can be done to improve the
customer’s trust that engaging directly will be easy
and will achieve the best result?
And as with the application of IT, each insurer will
have its own ambitions and requirements when it
comes to designing and delivering a new claims
process, placing a responsibility on TPAs to create
solutions that have the flexibility to 昀椀t in with multiple
individual insurer requirements.
No two insurers manage their claims in the same
way, so a one size 昀椀ts all approach to supporting
claims won’t work. TPAs therefore need to continue
on their journey of becoming part human service,
part technology provider and develop from that,
propositions which are truly modular.
“A key challenge for insurers
outsourcing claims to TPAs,
is that they are reliant on the
TPA’s digital roadmap, and are
therefore less well positioned
to transform existing claims
processes.”
Michael Lewis,
CEO, Claim Technology
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