Exploring the Benefits of TPA Claims Processing Systems | Zinnia

Third-party administrators (TPA) have become increasingly important in the life insurance industry in recent years. In an effort to keep up with rapid changes in technology, keep costs down and nimbly respond to market needs and opportunities, more insurers are relying on third-party administrators to manage claims and efficiently handle other processes vital to their businesses.

For insurers that want to improve customer experience, ensure regulatory compliance and simplify the claims process, implementing a TPA claims processing system can be a crucial step.

TPA Claims Processing Systems: What Are They?

TPA claims processing systems are software systems that automate the claims process. They eliminate the clunky, inefficient manual systems that many insurers continue to use for claims processing. Instead of remaining stuck with outdated, disconnected claims management processes, a TPA claims processing system allows insurers to streamline claims processing, simplify electronic workflows, contain costs by eliminating manual work and frequent errors, and automatically provide updates and ongoing communication with customers.

Today’s most effective claims processing systems for third-party administrators are cloud-based and accessible from anywhere you have an internet connection. Systems that are built on modern cloud technology are easily scalable and built to adapt as new digital capabilities become available. 

How TPA Claims Processing Systems Work

Modern claims processing systems harness artificial intelligence and automation to streamline the claims process. Typically, a cloud-based system will feature automated workflows that can be launched into action as soon as a claim is approved.

For example, Zinnia uses smart contracts that can speed up the claims process, increasing efficiency and reducing the number of errors made in a manual process. When a policyholder or beneficiary files a claim, the system automatically launches into a review of the details and determines the amount covered by the insurance policy. The claims processing system automatically moves the claim through the process of verifying policy ownership, policy status, the claimant’s right to make a claim, and regulatory compliance. At each step of the process, the claim must meet predefined criteria to move to the next step. If all conditions are met, the claim is automatically paid. Throughout the process, authorized parties—such as the carrier, claimant, reinsurer and broker—each have appropriate access to the claim information and status in real time.

Considerations Necessary for TPAs to Automate Claims

To automate the claims process effectively, third-party administrators need advanced technology systems that are cloud-based and allow for workflow automation and processing tools. Automating the claims workflow allows insurers to process claims faster and more accurately, reducing manual work and improving customer satisfaction.

In addition to an automated system that allows for claims processing, the most effective TPAs use systems that are easily integrated with other life insurance and annuities systems and processes. For example, Zinnia’s Zahara software provides an end-to-end life insurance solution from lead to claim and ongoing engagement and renewal.

TPA Claims Processing Systems Benefits

When insurers turn to TPAs to handle claims processing, they can benefit from the latest technologies without spending time developing their own new solutions or training staff on new tools.

By taking advantage of a cutting-edge TPA claims processing system, insurers can:

  • Optimize your back-office operations at scale
  • Reduce costs by eliminating manual claims processing
  • Accelerate digital transformation
  • Improve the accuracy of your claims process
  • Complete the claims process faster, resulting in more satisfied customers and beneficiaries
  • Consolidate and modernize workflows and processes

Why Zinnia Is the Preferred TPA Claims Management System

To provide insurers with a competitive edge, today’s third-party administrators must be built on a robust ecosystem of fully integrated capabilities and micro-services. From new business to processing to post-issue administration, Zinnia’s life insurance software delivers across the end-to-end service value chain for the life and annuity industry.

Zinnia’s digital third-party administration platform leverages advanced, enterprise-scale technology and features state-of-the-art, multi-tenant-based architecture to nimbly deliver services that accelerate growth and reduce cost and complexity.

For almost two decades of history as SE2, we’ve digitally standardized processes and developed best practices while building a proven track record in the third-party administration market. Now as Zinnia, our combination of advanced technology and proven, standardized processes allows us to improve productivity and reduce costs and operating risk while supporting regulatory compliance and improving speed to market.

Our claims management system is cutting-edge, cloud native, and frictionless, able to connect and integrate with a wide variety of other insurance solutions. Zinnia doesn’t just provide a top-notch claims processing system; it also provides a number of other TPA services and life insurance management systems, including:

  • End-to-end distribution support
  • Post-issue administration services
  • Business processes, controls, and regulatory support
  • New business processing
  • Consumer and producer self-service portals
  • Robust call center capabilities
  • Correspondence and print services
  • Finance operations, pricing and trading

Currently, Zinnia serves as third part administrator for more than 30 life and annuity carriers, processing more than $20 billion in premiums each year. Through our TPA services, we launch products and support new business, developing an average of 12 new products per year for our customers.

Because we know that life insurance carriers may want to maintain certain services internally, such as a call center, Zinnia’s TPA model is flexible. Insurers can choose to use the claims processing system only, or outsource a variety of services.

Zinnia has the advanced technology and experience needed to deliver exceptional insurance experiences, whether that’s bringing in new business, verifying and paying claims, pricing policies, trading, or managing regulatory compliance. As a deeply experienced third party administrator with cutting-edge, modern technology solutions, Zinnia’s robust claims processing software is really only the beginning. We can bolster your life insurance and annuity business from end to end, at every stage of the game.

Learn more about Zinnia and our open approach to life insurance.

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