It's no secret: Insurance risk is evolving. As a result, keepingrisk management practices up to date mustbecome a priority for third-party administrators (TPAs) lookingtoward the future.
|But expect challenges; this is much easier said than done. Arecent Accenture report found that greatervolume of data, regulatory demands, legacy technologies, and theincreased threat of cyber attacks are all impacting risk managementeffectiveness.
|Related: Getting serious about riskmanagement
|Fortunately for our TPA crowd, these challenging factors don'tnecessarily spell trouble for the industry. But they do requirepreparation.
|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 howto leverage it. One great way to improve processes and customerservice is by using the massive amounts of available data tooptimize claims management automation and upgrade insuranceofferings based on established customer patterns and their variedneeds.
|But to really make big data work in your favor, don't rush it.Instead, slowly integrate this tool into your processes. By beingmore deliberate in your introduction, you can set your sights onone task at a time and ensure each step is effective.
|Related: Here's why TPAs matter to the insuranceindustry
|Key No. 2: Be a consultative partner.
Each and every customer is different. As a TPA, you must playthe role of a consultative partner, zeroing in on each customer'sindividual and specific needs. How? Optimize your insuranceofferings by uncovering market trends, and educate customers bypassing along what those trends can mean for them. As aconsultative partner, you can help end the guessing game customersoften 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 thechallenges of the evolving risk landscape, focus on a few key areas— data-optimized processes and offerings, and a consultativeapproach — to create a favorable future.
|Steve Davidson is Vice President of Warranty forFortegra FinancialCorporation (a Tiptree Inc. company). He can bereached by sending email to [email protected].
|See also:
||Want to continue reading?
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