As Asia's insurance industry experiences dynamic changes and innovative trends, industry leaders are increasingly focusing on optimizing operational efficiency and improving customer experience.
Ultimately, insurance companies are looking for solutions that speed up claims processing while reducing costs. As a result, insurers are strategically aligning with third-party administrator (TPA) partners who provide innovative digital solutions to meet evolving market demands.
What forces are behind this market shift?
Transfer of risk
The Asian insurance market is growing in new ways and is very interesting from a TPA perspective. For example, more new companies are entering the market and insurance companies are exploring new lines of business.
As a result, in every growth sprint, companies face challenges such as risk, uncertainty, and the mandate to manage costs.
The challenge of new product lines for insurers means they don't have claims history to compare, plan, and provide appropriate resources. Businesses in Asia are increasingly turning to TPAs to shoulder some of the risks associated with growth, relying on TPAs to manage unpredictable volumes of insurance claims on their behalf. During periods of growth, it can be much more cost-effective in the short term than investing in in-house claims resources up front.
And TPA is happy to help and excited to see the market move into an outsourcing cycle. Businesses with limited resources and time can reap many benefits by partnering with a smart and experienced TPA to handle their claims.
cross-skill expertise
As the insurance company market changes, so do trends within TPAs. As a leader, I always listen to what my clients want and what my colleagues and teammates want to learn and grow in their roles.
Like we at Sedgwick, today's TPAs are increasingly investing in ways their teams can learn skills, diversify, and even take on new roles within their organizations. Training programs, upskilling resources, and opportunities to diversify and consolidate business areas are the path to the future for TPA.
why? Insurance companies are looking for partners and girlfriend TPAs with a wide range of skill sets to support claims issues. TPA services include much more than sales and support staffing. Having the right support staff and resources is currently a major focus for insurance leaders in Asia, and training and upskilling is one way he says he is bridging the gap.
Local support with global resources
One of the paradoxes of the Asian insurance market is that our communities are very close-knit, yet very geographically and culturally diverse. This is a unique and rewarding challenge unmatched anywhere else in the industry.
This is another reason why insurance companies turn to TPAs for help. Insurance companies need professionals with the confidence and experience to handle claims of all sizes and complexities, in any region, and in any language.
Across the region, we are seeing an increase in requests for claims professionals who can speak a variety of languages, including Chinese, Cantonese, Tamil, and Bahasa.
As technology breaks down global barriers, insurers need claims support that can grow with them. Insurers are increasingly seeking partners who can leverage the power of global networks and technology resources to deliver localized expertise.
When customer satisfaction—accurate and timely processing of claims—is the bottom line for TPA success, having a strong global network is a differentiator.
Sedgwick's approach to market change
Over the past six months at Sedgwick, my colleagues and I have taken a focused approach to understanding the needs of insurers, market trends, and the aspirations of our teams in Asia.
We have introduced new leadership, a new strategy and vision, and a skilled team to meet the needs of our clients. We hear the demand for better customer experiences, efficient complaint resolution, and cost-effective solutions.
In addition to building on our own teams in Asia, we are also shifting our support staff model to focus on multi-skilled claims technicians rather than unilaterally seasoned loss adjusters and support staff. We are transitioning. This means your clients will pay less for the same service.
Our market may be undergoing a major shift toward TPA support, but this is not the only change we will face in the year ahead. Leaders must take advantage of opportunities to learn from trends and transform their teams accordingly.
At the end of the day, insurance is a people-based business, and the best resource we can invest in is our people. a
Ms Nikki Dunn is Sedgwick's Chief Customer Officer for Asia.
