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Claims management has become increasingly complex due to a rise in catastrophes and the impact of the COVID-19 pandemic worldwide. Smooth claims management ensures profitability and efficiency for carriers. However, in order to deal with rising challenges, digital claims solutions are becoming more widespread.   Insurance companies often discontinue products or business lines to maximize profits. In such cases, they still need to offer service levels and customer engagement to policyholders to uphold their reputation. This is where third-party administrators (TPAs) enter the picture. They manage the operational hurdles on behalf of carriers. Digital transformation in insurance simplifies the hand-over and administration of such products by TPAs.   Benefits of Digital Insurance Solutions Provided by TPAs While most TPAs are proficient at managing basic administrative tasks, digital TPAs are rising in popularity. The level of customer service and transparency they of...

The insurance industry has been fighting a talent war for years. It is trying to reinvent its image in the eyes of millennial talent and is devising new ways to attract, engage, and retain the modern workforce.   Within the sector, this challenge is most keenly felt in the insurance underwriting space. Underwriting processes are undergoing digital transformation, and insurance carriers must adapt to meet this challenge. In addition to replacing retired talent (since the insurance sector has a higher than average median age in financial services), HR managers and senior executives need to upskill underwriters with digital and soft skills.   Underwriting Digital transformation and Evolving SkillsDemand Traditionally, insurance carriers have allotted the repetitive and clerical aspects of underwriting services to regular staff. But now these activities are becoming automated.Thus,staff are encouraged to take on more technical work. Staff members need to interpret a lot...

The entire financial sector is undergoing a paradigm shift with digitalization, and the insurance sector is no exception. Automated services, personalized policy offerings, improved customer experience, and accelerated time to the market for new products are some of the shining features making insurance providers flock towards digital transformation. The kingpins of the insurance sectors are now making data-driven decisions intending to provide omnichannel services. The COVID-19 pandemic has further accelerated the demand for digitalized insurance solutions. Data and digitalization have become the core of every business activity, and adaptation is the call of time. According to McKinsey analysis report, digitalized insurers increased from 1% to 70% in just five years in Europe, whereas the growth has been 20% from 0% in the United States (U.S.). Insurtechs have observed significant acceleration in growth as compared to traditional insurers. Digital transformation in insurance has incre...

From the beginning, third-party administration has been a part of every business. It takes most of the heavy duties to work off clients’ shoulders. Clients get enough time to invest in new product development, analyse  database information, and make appropriate decisions. For example, the claims process in the insurance sector is often outsourced. Process cycles involving significant in-house resources, tons of paperwork, and long wait times, are best executed by claims Third-Party Administrator (TPA). TPA acts as an arbitrator between the insurance provider and policyholder. They are government-regulated entities. Insurers outsource their operational processes, including enrolment, claims processing, benefits administration, etc., to TPAs. TPAs smoothen the  claims  processing and settlement. They provide value-added services and create a hassle-free enrolment process. Earlier, insurance providers hired traditional TPAs to offer insurance solutions. Claims TPAs relied on...