TPA services for life and annuity insurers | Genpact
  • Solution overview

TPA services for life and annuity insurers

The challenge: Control costs when net income is down

It's a challenging time for the life and annuities (L&A) insurance sector. According to S&P Global Market Intelligence, net income in this segment declined by over 50% in 2020 compared to 2019. Capital losses and a falloff in premium and annuity considerations are just two of the reasons behind this.

But challenges involving premium persistency have been on the rise – and given the current industry landscape, collecting on these outstanding assets seems more imperative than ever. At the same time, companies are seeking to control costs, so pouring more effort and expense into collections is not an appealing option.

Yet not all companies are equally impacted by these issues. In fact, the differences in net losses can amount to hundreds of millions of dollars from one institution to the next. The big question: what differentiates those insurers who are most effective at reducing the red-line entries in their ledgers?

The solution: A TPA with both granular and big-picture perspectives, backed by intelligent operations

L&A insurers often partner with a third-party administrator (TPA) to streamline every aspect of their work through digital transformation.

That's what Genpact brings to the table too. But our undisputed depth of experience and expertise in the L&A field is our real differentiator. Since 1997, Genpact has been a trusted TPA partner for insurers. Our clients appreciate our constant focus on outcome-driven transformation that goes far beyond cost savings, and our dedication to helping insurers scale their businesses profitably.

We do this in many ways. We start by dissecting business processes at every stage of their operation to get a granular view of how they function and where they need to improve. Next, we define key metrics so we can establish improvement benchmarks for each component, such as determining the point at which the cost of collections exceeds the loss incurred by a delinquency.

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After this deep dive, we step back to view the big picture. Here's our playbook:

  • Advise: Our advisory unit works closely with you to understand your specific business problem, help you evaluate your best options, and measure the ROI you can expect. We explore cloud strategy with a view to reducing IT spend and introducing new digital initiatives. We help you catalog data assets, manage master data, and make datasets easier for people to read, all while securing data privacy and helping you adhere to compliance requirements
  • Transform: Our insurance experts partner with business units to identify transformation opportunities, including process changes and Lean operations that maximize efficiency
  • Operate: We take complete ownership of the way our TPA impacts your business. Our focus on service levels uncovers value by improving the customer experience and strengthening brand positioning. Our reporting framework helps you make decisions based on data and offers proactive insights for pre-emptively tackling problems

Our intelligent operations (IO) approach harnesses digital solutions and other techniques to accelerate transformation at scale. For example, our unified orchestration layer, based on the Genpact Cora platform, boosts operational effectiveness without adding new technologies using a simplified system of engagement. This single servicing platform manages workflows, orchestrates digitization, and controls automation. And these tools work equally well for other insurance products, including retirement policies, employee benefits, long-term care, disability, and supplemental healthcare offerings.

This IO approach:

  • Supports business operations in a platform-agnostic environment
  • Administers active and closed blocks
  • Provides end-to-end service across the insurance value chain, including mailroom, new business, underwriting, actuarial support, policy owner services, contact centers, claims management, and risk and compliance
  • Deploys a global operating model that includes a digital workforce
  • Embeds analytics for improved insights and better decision-making

Notably, IO's user-friendly system of engagement and global operating delivery structure provide full support across time zones, ensuring business continuity and stable levels of service.

And critically, IO adapts to current and future challenges within the industry, including evolving technologies, new regulations, shifting demographics, and changing customer expectations.

The impact: Productivity and efficiency gains and future-proof operations

Our TPA clients have already seen powerful, positive results from these initiatives – hard numbers that prove the effectiveness of our comprehensive approach. They're reporting:

  • A 30–50% reduction in operating expenses
  • A 30–50% improvement in productivity thanks to automation and other technology
  • Transition from fixed-cost to variable and/or outcome-based cost model
  • Improved customer satisfaction scores
  • Improved business outcomes

Net losses may prove inevitable. But in a tough, highly competitive L&A climate, no company can stand to lose hundreds of millions when there's a scalable way to transform. Genpact can show you a practical path forward.

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