Thank you for sharing!

Your article was successfully shared with the contacts you provided.

An exceptional third-party administrator (TPA) provides optimal system support for its claims representatives, communicates clearly to you and your organization and is flexible to your needs.

But what else do risk managers look for in a TPA? Karl Zimmel, manager for Risk Management Services at UNS Energy Corp. in Tucson, Ariz., expands.

The TPA industry is a very challenging business primarily because it is largely driven by a large labor force that can vary significantly from one office to the next. Given the human element of the service, there will always be some level of issues to resolve if the program has much size covering more than one state with more than a thousand claims per year. 

My current program is strictly in one state with less than 100 claims, so it was fairly easy to pick what we believed to be the best claims office in our state and it runs smoothly.  Larger programs are more challenging partly because there is more staff involved on the employer side. If there is a significant amount of employer staff involved who don’t have the full knowledge of how a TPA program should be run, then it is imperative to educate them and set the expectations. Program issues can be exacerbated by divisions or subsidiaries directing their frustration from the allocation of claims expense at the claims adjuster. 

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.