Achieving and maintaining profitability is generally a top priority for any for-profit business or organization. For insurance companies administering workers’ compensation and automobile no-fault benefits, profitability is but one of many priorities they must balance. As anyone in this industry can attest to, the cost of administering these claims can rise rather significantly. Improving profitability is key to your insurance company’s success. Working with a third-party administrator (TPA) on all of your claims can help improve profitability in a variety of ways.
A TPA brings a number of significant benefits to an insurance company working with work comp and auto no-fault claims. Experienced TPAs will bring their own proven processes and procedures to the table that all add up to improved profitability. These processes will generally involve ways to make claims administration more efficient for both staff and claimants, which will help hold down the cost of claims over time. Reducing administrative burdens on claims staff members is an important part of boosting profits and improving the bottom line.
Some exceptional TPAs will also grant your company access to trusted providers within a network. Networks spanning the entire country are ideal choices since they allow for more convenience for your claimants. When claimants receive quality care from credentialed providers, they are much more likely to have a positive claims experience. This can lead to improved claimant satisfaction scores for your company, which of course ultimately leads to higher retention rates.
Another benefit of partnering with a TPA that features an expansive network of providers is the elimination of the need for claimants to pay for physician prescribed services. If your company works with a TPA’s network, your claimants should be able to receive the necessary prescribed services without having to pay out of pocket for anything. This only adds to the convenience your claimants experience, further boosting satisfaction scores as well as retention levels.
Not all TPAs are the same, however, so it is important to carefully research them and select the one that best suits your insurance company’s needs. Northwood, for instance, has over twenty-five years of experience in the claims industry. They also provide access to their trusted network of providers, each of whom are thoroughly reviewed each year.
Choosing to work with Northwood on all of your work comp and auto no-fault claims means improved profitability for your insurance company. It also means that your claimants will be satisfied with their experiences with your company, translating to more renewals and further improving the bottom line.