What are TPA Claims Services and the Importance of it
TPA Claims Services Providers are a vital aspect of the insurance industry, and its effective execution has a direct impact on the performance of insurance companies. TPA Claims Services refers to the process of handling insurance claims made by policyholders on behalf of an insurer, which involves a range of tasks from receiving and reviewing claims making decisions on cover and ultimately making payments or settling disputes. Efficient, flexible handling and processes can lead to improved customer satisfaction, increased retention rates, and reduced costs for insurance companies. In this blog, we will discuss the importance of TPA Claims Services and its impact on the performance of insurance companies.
Handling claims can be a complex process that requires a high level of expertise and attention to detail. Insurance companies must have a robust system in place to handle claims effectively, ensuring that policyholders receive prompt and fair settlements. This process involves a range of tasks, including claim notification, review and investigation, claim processing, and payment or dispute resolution. Claims management also involves communication with policyholders, ensuring that they are kept informed throughout the process in a way they can understand.
Insurers often find having their own claims service in-house is expensive and inefficient, whereas TPA Claims Services providers can do this more efficiently due to economies of scale and longstanding experience.
The importance of quality TPA Claims Services cannot be overstated. The way in which claims are handled has a direct impact on its customer’s perceived performance and value. Insurance companies with efficient claims systems who process claims efficiently and accurately, with flexibility for different schemes and customer circumstances can result in higher customer satisfaction rates. This, in turn, can lead to increased retention rates and improved brand reputation. In contrast, insurance companies with inefficient claims systems may experience delays in processing claims, leading to frustrated policyholders and negative reviews.
Effective and experienced TPA Claims Services can also lead to reduced costs for insurance companies. By use of streamlining the claims process and minimizing errors, insurance companies can reduce their claims cost. This can result in increased profitability, which can be reinvested in the company or passed on to policyholders in the form of lower premiums.
Whilst the use of technology has revolutionised the insurance industry, this still cannot replace human interaction with knowledgeable and experienced professionals, especially for niche or low-volume products, or for when things deviate from the normal path, and this is where Lexelle stands out. Our claims handlers are just that, people with proven knowledge and experience of handling claims from start to finish for both personal lines and the commercial market. Your customers will not be processed via a call centre operative and they will not get a ‘computer says no’ comment from Lexelle. What your customers will receive is efficient, help and understanding to move their claim and need forward to resolution, in a way they understand.
Because of our strength and proven results, Lexelle has become a ‘go to’ TPA for Delegated Authority claims handling, returning high levels of customer service together with efficient claims handling and policy administration services.
Lexelle has never burned an Insurer in respect of legal expenses products or any product Lexelle has placed – not even for Landlords Legal and Rent Guarantee cover during the Covid pandemic – an achievement in comparison to competitors. Lexelle were also at the forefront of advising insurers on how to provide fair outcomes when standard processes were no longer possible due to the pandemic restrictions.
Under the control of Lexelle, a market-leading Landlords’ Insurance scheme that had previously burned a number of Insurers was turned around and performed within target loss ratios
Lexelle monitors all claims activity and identifies patterns/issues and takes action as appropriate – such as recommending policy wording changes, updating training guides or where necessary, suggesting the removal of products that are no longer fit for purpose.
Quality service and decision making which is supported by the fact Lexelle has had less than 10 claims decisions overturned by the Ombudsman in over 20 years.
Lexelle has developed and implemented an action plan in line with the new Consumer Duty and to further enhance our evidence-gathering of fair processes, systems and outcomes for customers.
If you are looking for a claims service for your mainstream or niche insurance product, why not contact us on:
Telephone: 0114 350 4107
Email: sayhi@lexelle.com
Or fill in our enquiry form here – https://lexelle.com/contact-us/
We’ll be happy to help!