How to Choose the Best Third-Party Administrator for Claims

A specialized auto third-party administrator (TPA) could change the way you operate your business. Many companies continue to see risks evolving, leading to increased costs and difficulty managing bottom lines. A TPA can help by providing a strategic, data-driven solution to ensure you get the most out of every claim. This support can include claim, safety, and compliance solutions for your safety team, fleet, and risk management goals. 

Utilizing a TPA is a viable, well-made decision. However, not all are the same. It is critical to put this important task in the hands of a highly specialized and experienced team that can reduce your risk extensively. 

Factors to Consider When Choosing a TPA

As you consider the options in a third-party administrator, there are several key factors that play a significant role in your end result.

Expertise and Experience 

What makes the TPA the ideal choice for your company? For example, what type of experience in the insurance industry does the organization have that can help to manage the entire lifecycle of the claim? Who does the work for you? What is a third party administrator for this particular organization capable of providing in terms of experience in your industry?

The benefits of working with a specialized TPA are numerous:

  • Verifiable savings 
  • Reduced risk of exposure 
  • Improved recovery
  • Aggressive subrogation solutions 
  • Creative solutions to unique challenges within your organization

Customization and flexibility 

Select a TPA that provides flexibility in the individual management services provided. That is, not every organization needs every type of service available, and customizing the services you obtain from the TPA helps reduce your costs. Why pay for something you do not need or cannot benefit from? 

In addition to keeping costs down, a TPA that offers customized services can also help you fill in the gaps you have within your existing risk management team. Avoid a one-size-fits-all type of administrator that may not provide the individual support you need in core areas.

Auto ServicesThe benefits of working with a TPA that can adapt to your unique needs are many:

  • Avoid paying for services you do not need
  • Get more hands-on support for areas of risk management that may be lacking in your company right now
  • Create a plan to meet the individual challenges your organization has
  • Choose a provider that can grow with your needs as your business changes
  • Ensure you choose a provider that can consistently advance the services they offer as risks change within the industry

Technology and resources

What type and level of technology is the provider offering? What gives you the confidence that these are the resources that are best suited for the way you operate your business? In short, today’s technology improves efficiency and saves organizations valuable time in the claims process. A company with ample resources has the ability to grow, diversify, and maintain modernized technology as well. This helps to provide your organization with benefits over the long term. 

Having robust data-driven models is not something all TPAs offer, but it is one of the best reasons to invest in one organization over the other. This helps to ensure that the third party administrator can optimize claim outcomes by utilizing the best, most accurate data and analytical insights in your business. This can prove to be one of the biggest assets to your fleet and team as a whole, as it allows you to develop strategies to overcome common patterns of risk within your organization. 

The benefits of working with a TPA that utilizes advanced technology and has sufficient resources include the following:

  • female employee working on her office table.Better management of the claims process with more data management and streamlined technology
  • Tracking of claims is efficient and less time consuming, meaning results are faster as well
  • Ample protection for security is in place, ensuring even the most sensitive data and information is well protected while also safeguarding the company’s future 
  • Assurance of compliance adherence, which can help organizations save money over time while ensuring their business model remains healthy 
  • Mitigate risk with better data analysis and resources to help with protection and prevention rather than just being reactionary to incidents 

Communication and customer service

These are the bedrock of all good business relationships and simply should not be ignored. When hiring a TPA, ensure they answer your calls, respond to emails quickly, and manage the entire process for you with clear expectations. Poor customer service to you, their client, likely means that there will be limitations with their entire claims management process.

Look within the company to see benefits, too. For example, some of the best TPAs are able to manage their own in-house turnover more efficiently than others. That may not seem like it matters to you, but it can mean that they are driven and keep caseload assignments per employee down. This helps in your situation because it means you will have access to the trusted professional you need rather than a new person. How well they communicate with you is often dependent on how well their staff is treated.

The benefits of working with a TPA that provides exceptional customer service and communication include the following:

  • Clear, robust information when you need it, no matter what that is – they are there when you call
  • Dedicated employees that get to know your company and can provide more specialized and specific services to you – it’s nice to have one person to call when there is a problem
  • Minimize time delays by ensuring good communication, which ultimately means claims are processed faster, and results occur sooner 
  • You can see the company values you as a customer, and that means they will work hard to meet their obligations to you as a business 
  • Good customer service also means that they will listen, grow, change, modernize, and evaluate services on a consistent basis to continuously support your needs

Cost and value

Cost matters in all business decisions, and hiring a TPA is no different. The key here is to align the cost of the service to the value the organization provides. Can they demonstrate to you how much money and time they will save you by taking over this process for you? Look for examples to see the true value.

What does a third party administrator do for you in this area? 

  • The claims management process becomes less of a hold-back and limitation to your company 
  • The cost ends up helping you to improve your bottom line, saving you money throughout the claims process
  • Your business benefits from the investment in this service – at the end of the day, you are getting the support you need, customized to fit your business operation
  • You are not overpaying for services that do not fit your business model or deliver results
  • It fits your budget – ultimately, the cost for these services must fit within your organization’s budget

Why You Should Choose a Specialized TPA

Selecting a specialized TPA, like from our team at Fleet Response, ensures you have a company that has the unique ability to support your specific industry needs. That includes first-party auto claims management, general liability claims management, subrogation services, and third-party property claims management.

A specialized provider understands your unique needs, minimizes risk, and ensures the best possible bottom-line outcome. 

Conclusion – What Now?

Hiring a TPA for claims management makes sense. Spending a few extra minutes comparing your options to find the best provider for your company is essential. There is a real value that comes from doing due diligence and selecting the right TPA for your specific needs. It saves you time, delivers exactly what you need, and supports your company’s long-term growth. Consider these third party administrator benefits a valuable component in growing and supporting your business.

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Learn how Fleet Response can help you. Find out what a third-party administrator could do for your business. Contact our team today.