One of our valued clients, a leading non-carrier-affiliated Managing General Agent (MGA), celebrated the milestone of achieving $1 billion in-force written premiums. We had a chance to pause and reflect on our successful partnership and the important role Alacrity played in supporting their growth.
This collaboration demonstrates the strength of Alacrity’s Third-Party Administrator (TPA) operations, our role in MGA partnerships, and highlights our scalable solutions and significant industry growth. We help our partners thrive in the competitive insurance industry.
How a TPA Works
As a TPA, Alacrity manages the claims process for insurance carriers. Our TPA operations cover the entire claims department, offering a complete ecosystem to handle everything from desk operations to field work and a nationwide Managed Repair Network. This holistic approach ensures all claims are processed smoothly, meeting both state regulations and carrier guidelines.
For MGAs – who sell insurance policies but may lack the infrastructure to handle claims – a TPA like Alacrity is essential. By taking on claims management responsibilities, we allow MGAs to focus on what they do best while ensuring their customers receive timely and accurate claims processing.
How Alacrity’s TPA Business Has Grown
Alacrity’s journey in the TPA market began two decades ago through the acquisition of a well established TPA. This strategic move set the stage for significant expansion, particularly within the MGA sector. One standout success story is the partnership with a unique and dynamic MGA that has grown to collect over $1 billion in annual premiums.
The group started with a novel concept for a renters program and, with Alacrity’s support, expanded into various lines of insurance, including flood, homeowners, and specialty lines. This growth showcases Alacrity’s ability to scale operations effectively, from handling the first claim to managing a complex portfolio of insurance products across multiple regions, including international markets like Canada.
Scaling Expertise to Handle Diverse Insurance Needs
A key factor in Alacrity’s success is our ability to scale. As our client’s offerings expanded, Alacrity scaled its TPA operations to meet the increasing complexity and volume of claims. This involved strategic hires and development of robust processes and procedures to both ensure and enhance compliance, quality control, and supervision.
For example, during the 2020-2021 surge in claims, Alacrity quickly ramped up its operations to meet the demand. Our proactive approach and investment in resources allow us to maintain high service levels, even during periods of rapid growth.
Leveraging Internal Synergies for Superior Service
Alacrity’s unique structure allows it to provide value-added services internally, which enhances the TPA offering. For instance, our Temporary Housing division can immediately plug in when the first notice of loss call is received, providing prompt and tailored housing solutions. This internal collaboration is just one example of how we ensure speed and accuracy, improving overall customer satisfaction.
We also leverage synergies across other departments, such as restoration, forensic engineering, or water mitigation estimate evaluation, ensuring each claim type is handled efficiently using Alacrity’s comprehensive suite of services. This collaborative approach not only supports MGAs but also strengthens Alacrity’s market position.
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To Sum It Up
Alacrity’s TPA services stand out for their comprehensiveness and scalability, addressing the nuanced needs of MGAs and insurance carriers. Our partnerships and successes are testaments to Alacrity’s capability to support significant growth and manage diverse insurance programs effectively. With a focus on leveraging internal synergies and adapting to market demands, Alacrity continues to be a pivotal player in the TPA landscape, poised for sustained growth and innovation. Here are some key highlights:
• Comprehensive TPA Services: Alacrity runs the entire ecosystem of the claims department, utilizing our vast range of in-house services for efficiency and effectiveness.
• Scalability and Expertise: Alacrity’s ability to scale and adapt has been pivotal. With robust processes and a dedicated team, we are well-prepared to seamlessly manage the eight new products in the pipeline without disrupting our current operations.
• Cross-Servicing Synergy: One of Alacrity’s strengths is leveraging our various divisions, like our managed repair network, contents, and temporary housing solutions, to enhance service delivery for our TPA clients.