How Cloud-Based Insurance Solutions Can Benefit Third-Party Insurance Administrators
Offering quality insurance products is a complicated task, one that will sometimes require the participation of different parties. Taking on a supportive function for insurance companies and self-insured employers alike, third-party administrators (TPAs) are typically tasked with administrative responsibilities. An insurance company can rely on a TPA to handle all of its day-to-day processes, including managing its claims, premiums, billings, and customer enrollments. On the other hand, self-insured companies often rely on TPAs to oversee the management of their internal insurance programs. In both instances, TPAs play a crucial role in making effective insurance services more accessible to a wider pool of consumers and employees.
Managing the administrative requirements of an insurance system is no mean feat, and many TPAs are faced with the same challenges that insurance providers are all too familiar with. These include the rising cost of healthcare, the adjustments in rules and regulations that govern insurance operations, and the changing needs of the insured individuals and groups that they cater to. Just like insurance providers, then, TPAs must depend on insurance software that is capable of meeting these current challenges.
Cloud-Based Insurance Solutions: A Game-Changer for TPAs
The ability to adapt quickly to the market, to regulatory requirements, and to other factors that can affect their operations is essential to the success of TPAs. Adopting insurance solutions that are based on the cloud will help these agencies speed up their processes, rapidly deploy new products, and complete the requirements of the people and businesses they serve. Through cloud-based solutions, TPAs can eliminate inefficiencies in the way they manage their customers’ businesses, all while keeping costs at a minimum.
Here’s how cloud-based insurance solutions can help TPAs address their most pressing needs:
Offer Options That Help Clients Curb the Rising Cost of Healthcare
Many companies set up a self-insurance program not only because they need a more customized safety net for their employees, but also because of the cost-savings it offers them. Self-insuring companies enjoy exemptions to state health insurance premium taxes, and this can help employers minimize their expenses while providing their employees the exact protection that they need. By utilizing cloud-based technology and having the capability to handle a full suite of administrative functions, TPAs can furnish their clients with cost-effective services, accommodate more customers, and pass the cost savings to the people and companies that they work with.
Acquire the Essential Tools for the Rapid Implementation of New Rules
Self-insured companies have to deal with fewer conflicting or confusing rules compared to companies that rely on the services of large insurance providers. This is because private retirement and health plans are overseen by the Employee Retirement Income Security Act (ERISA), and self-insured companies and TPAs only need to check the terms of the act to ensure their full compliance.
However, this doesn’t mean that TPAs are at a disadvantage if they use their cloud-based solutions for the benefit of insurance providers. Implementing new rules and conventions can be easily done on cloud-based insurance solutions. In fact, TPAs that make use of cloud-based software are at an advantage no matter if they’re dealing with self-insured companies or insurance providers with more complex governing rules.
Reduce the Time and Resources Needed to Respond to Customer Concerns
A group or individual’s healthcare needs can change from one day to another, especially in the wake of a global pandemic. While telehealth medicine has been an option for many clients even before the start of the COVID-19 pandemic, this modality of delivering healthcare services only became popular in the past few years. As a mediator between healthcare providers and self-insured companies, TPAs must have solutions in place to make telehealth services more accessible to their customers.
Again, the use of cloud-based solutions enables TPAs to adjust their operations in real-time according to the needs of their customers. If a TPA finds itself inundated by telehealth requests from self-insured companies, it can easily roll out programs that will facilitate the fast processing of these types of claims and requests. This is possible through the use of scalable cloud-based insurance solutions.
Anticipate the Opportunities and Disruptions Brought bout By the Digital Revolution
The use of cloud-based insurance solutions will also prove to be an advantage for TPAs in the near future. More insurance providers and self-insured businesses have been looking into decommissioning their legacy systems in favor of digital solutions, and naturally, these companies will want to partner with TPAs that have the same stance when it comes to utilizing digital and cloud technologies. Industry leaders, in particular, are likely to consider partnering with forward-thinking TPAs that have a good track record for making use of cloud-based insurance solutions.
Now is a good time to see cloud-based technology as the most accessible answer to the challenges that TPAs and traditional insurance companies both face. This technology is being widely adopted by leaders in the financial and insurance sector, and soon enough, it will become the standard even for providers of third-party administration services. Adopting this technology today will ensure that a TPA will not be left behind in the digital revolution.