The Importance of Finding the Right Claims Management Partner

By: John Fearn

Over the years, outsourcing claims management to a trusted partner has become a proven strategy for addressing a number of challenges and empowering insurers to enhance operational efficiency, reduce costs, maintain flexibility, address market knowledge gaps, and retain talent.

An example of the rising trend in outsourcing emerged in our whitepaper, The Carrier Perspective: 2025 Claims Insights, with 69% of UK insurers reporting that legacy claims were a key area of concern, leading insurers to assess the effectiveness of their current support and long-term strategies.

The Benefits of Working With a Third-Party Administrator

With the overall challenges facing the industry, insurers have compelling reasons to seek third-party support. From managing the rising cost of litigation claims to enhancing risk assessments, the reasons to evaluate your organisation's ability to handle the current climate in-house outweigh the reasons not too. The decision to outsource comes with its own set of challenges as the process of evaluating and finding the right partner is crucial.

Choosing the right third-party administrator (TPA) is a decision that, if made carelessly, can significantly impact your business's reputation, compliance standing, and financial targets. By carefully evaluating potential partners, insurers can leverage the benefits of outsourcing, including access to their talent and award-winning technologies, and identify growth opportunities.

What to Look For in a Claims Management Partner

Choosing the right TPA requires careful consideration of several key factors. Here are three key questions to consider:

1. How are they balancing cutting-edge technology with proven solutions?

While technology plays an important role in optimising the claims process, a strong TPA also understands the value of an experienced professional. As a result, their strategy will blend innovation with industry expertise to deliver superior outcomes. By balancing data-driven insights with human insights, they empower your business to make informed decisions and manage risks effectively.

At Gallagher Bassett, we're in constant pursuit of striking the right balance to reap the rewards of new technology without absorbing the negative impact. To achieve this balance, we've future-proofed our artificial intelligence (AI) strategy with a people-centric approach that focuses on how we can better support our human talent with best-in-class tools and insights instead of simply optimising administrative costs.

2. Do their strategic objectives align with yours?

Every insurer is unique, and a one-size-fits-all approach to claims management doesn't work. Businesses should prioritise a tailored approach that reflects their strategic objectives, company culture, claims portfolio, and client expectations, and a prospective claim management provider should be prioritising getting to know your business before developing their strategy.

We know that TPAs are most effective when they act as an extension to your business, supporting your team during surge periods, offering enhanced operational resilience, and sharing a commitment to deliver excellent claims outcomes. This is why our first step in any new partnership is to understand a business's strategic objectives, company culture, and long-term vision. Our collaborative approach unlocks the full value of outsourcing by fostering a strong partnership from day one.

3. Do they prioritise compliance?

Laws and regulations governing insurance claims are constantly evolving. Failure to stay compliant can lead to legal, financial, and reputational damage. Your TPA must have a strong track record of regulatory compliance and risk mitigation, demonstrating a commitment to staying ahead of industry changes as opposed to simply reacting to them.

The need for compliance is why enhancing our legal and compliance capabilities is one of our key focuses. After our acquisition of law firms Strata Solicitors and Caytons Law, both were nominated in 2025 for Modern Claims Awards' and British Claims Awards' Law Firm of the Year. These nominations underscore our unwavering commitment to exceeding expectations and enhancing our legal function and compliance strategy to deliver best in class service.

Outsourcing claims management is a strategic decision that can enhance efficiency, improve claims outcomes, and drive business growth. However, the success of this approach relies on selecting a TPA that aligns with your business goals, values, and operational needs. By carefully assessing potential partners based on innovation, reliability, and compliance, insurers can forge a strong, value-driven partnership that delivers long-term successes. For insurers seeking a trusted claim management partner with a deep understanding of the industry's landscape, reach out to our team to discover how we deliver superior claims outcomes and a consistent, benefit-driven experience for our clients.