How Modern TPAs Are Accelerating Digital Transformation in Insurance

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 offer is beneficial for insurance carriers to retain customers. Here are the benefits provided by digital TPAs vis-a-vis traditional TPAs:

 

§ Digital TPAs leverage data and technology to offer personalized and consistent customer service

§ They offer better pricing to carriers thanks to process standardization and efficiency

§ Digital TPAs offer digital claims solutions that improve communication and response times

§ They discover mutually beneficial ways to collaborate that enhance service delivery and customer satisfaction

 

The Pressing Need for a Digital TPA 

One of the clients of Xceedance, a privately held US-based specialist in homeowners’ insurance products and services, wanted to reap the benefits of digital transformation in insurance through a digital TPA. The company was working with an underutilized claims system that was unable to capture critical data that could improve policyholder experience across 10,000+ claims. This was leading to greater complaints and litigation costs, which was undermining its standing in the competitive insurance market.

 

A partially deployed and inefficient claims platform needed to be replaced within eight weeks so that digital insurance solutions could be offered. Xceedance stepped in to rebuild the claims adjusting team, setup a digital network, and reimagine the claims management process.

 

How Xceedance Digital TPA Solutions Help

By leveraging data, technology, and operational expertise, Xceedance ensured the client could optimize claims management and deliver a personalized user experience. Process efficiencies and service quality have been revamped with the help of a dedicated team of 30 desk adjusters and managers well-versed with digital claims solutions.

 

Xceedance implemented its Virtual Adjust solution and an integrated technology portfolio to enhance cycle times, payments, onboarding, quality assurance, and several other tasks. Additionally, the introduction of automated responses at critical policyholder checkpoints is boosting communication with users. By focusing on data capture and tracking, Xceedance is helping the client boost processes and performance as it embarks on a digital transformation in insurance journey.

 

With the help of cutting-edge technologies and a well-trained team, Xceedance has delivered the following digital TPA benefits to the client:

 

§ Setup a digital claims management system within eight weeks compared to the industry average timeline of four to six months

§ Reduced cycle time by five days and reduced costs by 63%

§ Transferred 180,000 claims over two million claim documents to the system in six weeks

§ Provided dashboards for real-time visibility into digital insurance solutions

§ Delivered cat responses for catastrophes with speed, efficiency, and scalability

§ All legal bills are cleared within 30 days of receipt

§ 2,000+ policyholders benefited from enhanced claims experience

§ Integrated loss mitigation into first notice of loss (FNOL) processes by establishing a 36-member strong vendor network

 

The client has found that digital insurance solutions and digital TPAs vastly outperform traditional TPAs on multiple parameters. Time and cost savings help the client provide policyholders with better service quality and real-time communication. The end result is a satisfied customer base that views the client as a trusted insurance service provider.