Third party administrators (TPAs) have a major responsibility in the administration of their clients’ employee benefit plans. Effectively managing these responsibilities demands that they continuously adapt to new market conditions and regulatory developments. Today, the most successful TPAs are adopting new strategies which enable them to provide the highest quality of services to their clients, while remaining competitive. Here are some of the strategies that the most progressive TPAs are implementing.
New Strategies
With the employee benefit area becoming more complex for both plan sponsors and their members, many TPAs are expanding their education and communications services. They are developing educational materials that inform both businesses and their employees about various benefits, as well as related compliance requirements. These efforts are directed at both a client’s existing benefits and new benefit offerings. Regarding new benefits and plan changes, TPAs are offering additional guidance, making recommendations so that plan sponsors can make informed decisions and gain the greatest value from their benefit offerings.
As part of their support to their clients’ communications with employees, TPAs also are recommending that plan sponsors notify their employees even if they are not required to in order to remain compliant. By providing employee notifications on behalf of their clients, TPAs demonstrate their commitment to supporting their clients.
Another strategy TPAs are increasingly adopting is to form collaborative partnerships with other professionals in aligned fields. Law firms that specialize in employee benefits and related regulatory compliance are particularly favored as partners for TPAs. In addition, TPAs are collaborating with information technology firms with employee benefits administration solutions that support regulatory compliance and the TPAs’ administrative functions. Further, many TPAs are becoming more active in industry associations that offer valuable information on the latest market conditions and trends, regulatory changes, and networking opportunities which help TPAs form new, valuable industry relationships.
Finally, TPAs are expanding their marketing and media channels to gain more exposure, build brand awareness and potentially capture new business leads. They are using social media, public relations and advertising firms to develop news releases and features, as well as both traditional and digital advertising campaigns. In addition, TPAs are generating client newsletters along with email bulletins to announce significant news relating both to important market and regulatory developments, and their own corporate news (e.g., new services, employee announcements, awards, philanthropic activities, and participation in industry conferences).
By leaning into new approaches that support optimum client service, TPAs are positioning their organizations for long-term sustainability.
