A strong provider network program is critical to a property and casualty (P&C) insurers' cost containment, benefit extension and customer retention strategies. Both in the workers' compensation and auto casualty markets, one tremendous opportunity to retain customers and maintain a competitive edge comes from the lower claims costs associated with provider bills that fall into provider networks.

Positive customer satisfaction is a requirement for retaining customers and growing a business. The claims process is one of the best opportunities for P&C carriers to provide added value to their policyholders. For auto insurance carriers, using voluntary provider networks lowers the costs associated with claim-related medical treatment and enables policyholders to receive additional, necessary, medical care since they will not reach their policy limits as quickly. This translates to customer benefit extension, which in turn can drive a better customer retention outcome.

In workers' compensation, a reduction in claims cost is achieved through accessing a preferred provider organization to receive contracted discounts beyond state fee schedules and bill review reductions. By helping injured workers get healthy in a more cost effective way, workers' compensation insurers' can clearly show their concern for their customers in a fiscally responsible manner and lower their overall claims costs in order to remain competitive within the industry.