What Should You Look for in a Claims Management Service?
Oct 20, 2021

2020 showed us how far the world can spin off its axis. Now, nearing the end of 2021, insurance companies still have their work cut out for them—48% of insurance executives agreed that the pandemic proved how unprepared they were to handle a crisis, and only 25% agreed that they had a clear action plan moving forward.


Whatever the pandemic has in store for the end of 2021, one thing remains clear: Business goes on. But to thrive, companies need to be strategic about resource management.


That’s where a claims management service like Gallagher Bassett (GB) can help. We take claims handling off your plate so that you can focus on driving a better experience for your customers.


What is a Claims Management Company?

A claims management company is a company whose job is to help you navigate insurance claims. They help you navigate the entire claims process from start to finish, including filing claims, handling the paperwork, and dealing with administrative details.


In exchange, they take a small fee for their services. This typically means a flat lump sum or a percentage of the final payout, depending on the claims company’s fee policy.


Basically, a third-party claims administrator handles all incoming claims for your insurance company. In doing so, they help a carrier fulfill its promises to its insurers.


A claims management service can help with various claims, from workers’ compensation to personal injury. That said, they often focus on a specific area of expertise, such as auto claims.


At GB, our focus is on delivering consistently positive outcomes. We invest in our people and our culture, as we firmly believe that the best claims people deliver the best claims outcomes. We also leverage our expertise to develop products and solutions that enable GB to be the industry leader in partnered claims solutions for carriers.


How It Strengthens Your Resolution Management

The right claims management service can make a world of difference for your resolution process. The claims management process is extensive, and it involves more than just filing and settling a claim.


By handling claims for you, a claims management service aids in four critical areas:

1.       Settling a claim

2.       Detecting fraud

3.       Lowering administrative costs

4.       Avoiding litigation


By bringing in an expert, you’re investing in peace of mind. You’re handing the claim over to experienced professionals who know how to investigate a claim efficiently and effectively, protecting your company against fraud while working in your best interest.


If you’re looking to reassess risk, a claims management company is your best asset. Rather than investing in your own investigation infrastructure, you can hire a trusted partner to manage it for you. At GB, your trust in us is our priority. Put the work in our hands so that you can focus your resources on other essential business investments while knowing you’ll get the best possible outcome.


Qualities of a Great Claims Management Service

Your claims management service is more than just an outsourced partner. It represents your brand and is an assurance to your customers that you can deliver the high-quality experience they expect.


As such, a claims management service should be a partner that’s well suited to represent you. That means finding a partner who’s aligned with your brand, priorities, and needs.


Here are three ways to ensure you find the right fit.


1. Prioritize Strategy

First, as with any outsourced partner, you have to think about the benefits you’re hoping to obtain from the relationship. In other words, think about what experience you’re trying to give your customers and the claims service’s ability to deliver that experience.


For example, if you compete on a no-frills, low-cost proposition, efficiency is the name of the game. However, if you prioritize innovation, you need a carrier to deliver premium client service.


Remember, evaluating outsourcing partners is all about determining if the potential partner has the experience, expertise, and industry focus to deliver on your brand promises. A claims management company that primarily works with no-frills insurers likely can’t provide the type of experience you’re looking for in premium offerings.


A good way to approach this is by thinking about where you compete in the insurance industry. Then, look at the types of companies your potential claims partner works with. That will give you an idea of the types of services they can provide.


2. Focus on Outcomes

It’s also important to focus on the outcomes, not just the cost. Yes, the cost is an important factor, but that’s just the sticker price. You also need to consider the result.


The real value of a claims service lies not in their ability to do a job at a minimum price but rather in their ability to deliver the right client experience. For this reason, your partner should have the data and the analytic infrastructure to improve performance over time.


Outcomes are our priority at GB. We are always looking toward the future and, more importantly, striving to actively meet it. Our focus on analytics, innovation, and automation allows our claims professionals to do what they do best: partner with our clients and their claimants to deliver superior outcomes.


So, when examining potential services, turn a critical eye to how they present their ability to deliver outcomes. This says a lot about their focus and capabilities.


3. Evaluate Capabilities

Last but not least is the functional side—your partner’s capabilities.


This involves a careful assessment of the service’s current capabilities and plan of action. Remember, this is a strategic partnership, which means you need to assess their capabilities with an eye towards the future just as much as the present.


A good way to assess this is to talk with your partner about scalability and their strategic vision. If it aligns with yours, you’ve found the right match.


The Claims Management Partner You Need

The right claims management service can make all the difference between a headache and a smooth process. At GB, we know how to deliver a pain-free claims process, and we are committed to growing as you grow and to keeping the future in mind. We work globally and right here in the U.S., partnering with more than 4,800 organizations from every sector of the economy.


We devote ourselves to innovation, exceptional service, quality, and the highest level of expertise—all in an effort to support you and your business.


Ready to take charge of claims management? GB is ready to help. Head to our main site, and get in touch today to discover how our claims management team can empower your business.


Jon Stambaugh has over 20 years of industry experience and is the Senior Vice President - Carrier Practice Sales at GB. You can find him on LinkedIn.


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