Insurance Claims Services Providers: 4 Solutions for Internal Pricing Pressures

In the competitive landscape of insurance claims services, vendors often find their products underpriced and failing to reflect the true value they deliver, resulting in reduced growth and profitability. Specifically, we have found this issue in the professional claims' services (TPAs, managed repair networks, etc.) and claims technology providers (e.g. digital loss estimating solutions). Four key factors in control of the seller are resulting in unnecessary pricing pressures.

1. The Commodity Mindset

One of the most significant factors is the “commodity mindset”. This occurs when claims services vendors view their offerings as interchangeable with those of their competitors, believing that there is little to no differentiation. This mindset leads to price-driven competition, where vendors focus on lowering prices to win contracts rather than emphasizing the unique value they bring to the table.

For example, we find that loss adjusting services carriers are…