With the increasing threat globally from natural disasters and terror-related activities, there has been an escalation in claims related work in the insurance sector. This has put additional pressure on insurance companies who have found this to be a distraction from their core business activity of selling and issuing insurance policies. Cost is another factor here. Moreover, you will need to investment on infrastructure to meet the rising demand of claims. Thus from any aspect that one looks at this scenario the picture is always the same. Insurance companies need claims administration services to boost productiveness.
Outsource claims management offer several other advantages too. Apart from helping in cost reduction, insurance companies can offer a higher level of customer service. Without bogging down, you can get more business by settling claims within the timeframe. Again, cost reduction gives the insurance companies greater flexibility in pricing their products and creating greater business opportunities. Ultimately, you can utilize the existing manpower on what they do best core and boost productivity.
What Claims Administration Services Offer?
-
Claim set-up, eligibility, and estimation
The preliminary work related to claims administration consists of accepting a claim and evaluating its eligibility. There are different statutory exemptions and inclusions in claim processing. Before you come to the final eligibility, you will have to go through with a fine comb. This procedure requires great professional expertise and outsourcing agencies have specially trained and knowledgeable people for handling this aspect.
-
Disbursement
Even though this is the natural fallout of the whole process, ensure the amount goes to the actual claimant. It has been seen that determining this aspect often turns critical due to legal complications. By being free from this non-productive activity insurance companies can boost their performance levels in core activities.
-
Fast track adjudication
A great deal of credibility of an insurance company rests on claim settlement and quick adjudication. An individual will buy a policy on the assumption that if anything untoward is to happen his claim will be speedily settled without any trouble to the nominee. Anything otherwise will shake the faith people have on insurance companies, one reason why claims are settled at the earliest when companies choose claims administration services.
-
Claim auditing
This is again a very crucial component of the total claims administration process as outsourcing agencies have to submit their disbursed claim papers for audit and checking for any form of inaccuracies. This can be carried out by either by the parent company or by other regulatory or statutory bodies.
By understanding and going through the factors that take in the total claims administration procedure, it is possible to see how claims administration outsourcing can free up the insurance companies enabling them to focus on more productivity activity that has a direct bearing on business growth and profitability.
