7 Reasons to Use a TPA

The use of a Third Party Administrator allows you to explore larger and more unique opportunities. Rather than just looking for “vanilla” or “cookie cutter” plans, you can bring in expertise to allow you to bring custom solutions to problems. This enables you to sell a solution vs. a product.

A partnership with a TPA adds a level of expertise to help you better focus your prospecting efforts and improve close ratios. This may come from identification of plan issues, bringing solutions or expertise to the meeting, or simply having the resources available.

Daily administrative questions, compliance testing and annual government filings – clients will have many questions and a TPA can resolve them before they get to you. Additionally, a TPA can streamline much of the administration to allow the client to focus on their real business – further enhancing their experience and showing your value.

Most clients & prospects are looking for more than a “one man band”. Rather, they like to see a team with a depth of expertise & views. The addition of an independent TPA adds to your value by allowing you a larger team to serve the client and meet their needs.

TPA’s retain over 99% of their business each year on average. As they are part of your “team”, the client is likely to keep the entire “team” together leading to higher retention rates vs. bundled products.

With daily client interaction on various administrative tasks, TPAs can also be a valuable source of client feedback, helping you identify problems or opportunities early and improve your retention.

The TPA is deemed an independent third party. As such, if a plan sponsor has a strong relationship with a TPA, this helps your relationship with the client as well.