By: Danny Boulanger | August 16, 2023
The insurance sector is rapidly evolving, driven by technological innovations, shifting client needs, and a dynamic regulatory landscape. Now, more than ever, group insurance brokers have compelling reasons to become a Third-Party Administrator (TPA). Let’s explore why.
- Diverse Benefits on Offer
One of the significant advantages of becoming a TPA is the ability to offer a comprehensive range of benefits. Today, companies aim to provide their employees with not only group benefits but also voluntary and individual perks-benefits. Such varied demands require flexibility that only a structure like a TPA can genuinely offer. By becoming TPAs, brokers can tailor and expand their offerings, thereby meeting all of their clients’ needs. Moreover, they can control the benefits sale, ensuring their clients get the best possible deal.
- Broadening Service Offerings
Beyond traditional insurance products, the TPA status allows brokers to introduce an extended range of high-value services, such as telemedicine, Employee Assistance Programs (EAP), Health Spending Accounts (HAS), wellness account, perks, and an array of individual financial and health services.
- Opportunities Through Modern Platforms
Innovative platforms like Segic revitalize the brokers’ proposition. Traditionally, brokers mainly operated with a B2B focus, limiting their sales to businesses. However, with features like self-enrollment and the benefits marketplace introduced by Segic this fall, brokers can now target a company’s employees directly, multiplying cross-selling opportunities.
- Boosting Sales and Client Loyalty
The combination of an expanded service offering, enhanced benefits management, and direct access to employees through platforms like Segic leads to a significant increase in sales and profits. Moreover, by continually introducing relevant new services, brokers strengthen their clients’ loyalty.
- Service Diversification and Operational Efficiency
In addition to the points mentioned, becoming a TPA allows for service diversification, more frequent client interaction, optimization through the automation of administrative tasks, and potential regulatory benefits.
Conclusion
Moving towards a TPA model offers group and property and casualty insurance brokers a unique opportunity to expand their services, get closer to their clients, and optimize their operations. In a world where innovation is paramount, adopting such a strategy favorably positions the broker for the future.
