Insurance Third-party Administrators Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Insurance Third-party Administrators Market is Segmented by Insurance Type (Healthcare, Retirement Plans, Commercial General Liability Insurers, and Other Insurance Types) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).

Market Snapshot

global insurance third party administrators market size
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: >5 %
global insurance third party administrators market major players

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Market Overview

The COVID-19 pandemic is impacting the insurance industry in multiple ways, from employee and business continuity issues to client service considerations to the financial outlook. The insurers are responding to the COVID-19 outbreak on multiple fronts, as claims payers, employers, and capital managers. Each has its distinct challenges for the insurance industry, the economy, and society.​

Third-party administrators (TPAs) provide claims administrative services to businesses. Many serve mid-sized or large companies that have opted to self-insure a portion of their liability, commercial property, or workers' compensation risks. They may also administer claims for businesses that have self-funded their health, dental, or other benefit plans. TPAs range in size from very small to large companies.

Some TPAs are building the requisite capabilities in talent, technologies, and data to address the changing needs of the insurance industry, but most TPAs lag. The Y-o-Y revenue growth slowed down for most TPAs in the United States. Due to the pandemic, this decline may also continue in the current year.

While the TPA industry has multiple drivers, such as service expansions and carrier outsourcing, several impending challenges restrict growth opportunities. Most of the digital-led use cases implemented by TPAs are less sophisticated compared to the use cases implemented by insurance IT providers or business process outsourcing providers.

Scope of the Report

The scope of the study includes an understanding of various insurance TPA service providers and their business models, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. It also includes an in-depth analysis of the market size and forecast for the various segments. The insurance third-party administrators market is segmented by insurance type and geography.

By Insurance Type
Healthcare Providers
Retirement Plans
Commercial General Liability Insurance
Others Insurance Types (Motor Insurance)
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
Rest of Europe
Asia-Pacific
China
India
Rest of Asia-Pacific
Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

The US Insurance Third-party Administrator Market is Growing

The US insurance third-party administrators market has a low concentration level and a high level of fragmentation.​ The primary negative factor affecting the US industry is high competition, while the primary positive factor is low revenue volatility. With increasing disposable income levels, consumers are buying cars, homes, and other assets that need insurance. Higher per capita disposable income enables individuals and households to expand coverage as they can afford higher health, life, property, and casualty insurance premiums.

global insurance third party administrators market growth

Market Trends of Health Insurance TPAs in the GCC Region

Third-party administrators are prominent players in the healthcare industry and have the expertise and capability to administer all or a portion of the claims process. In GCC, mandatory health insurance law was applied. By 2017, mandatory health insurance got fully applicable in Dubai and Abu Dhabi. Many small insurers in GCC are increasingly opting for TPA support. Smaller insurance companies have a traditional way of operating and have TPAs fill in the gap by providing the support required to digitize, as per DHA norms. About 98% of health insurers in the region outsource to TPAs. Among the 23 TPAs in Dubai, seven companies control most of the business, i.e., about 90%.

global insurance third party administrators market analysis

Competitive Landscape

The report includes an overview of third-party insurance administrators operating across the world. The report details the profiling of companies, covering the services offered, digital adoption levels, regulations governing them, headquarters, financial performance metrics, and general pros and cons.

Recent Developments

  • November 2020 - The company announced the acquisition of Australia-based HBA Groupas part of the continuing expansion of Crawford Legal Services (CLS) in the United Kingdom and globally. HBA Group comprises HBA Legal (a legal services enterprise that partners with underwriters, brokers, insurers, and self-insured companies across Australia and London), Paratus (a claims management business), and Pillion (a legal process and technology provider).
  • September 2020 - Gallagher Bassett Services Inc. launched the GB Transportation Major Case Unit (MCU), a claims handling center that focuses solely on clients’ most severe, complex, and high exposure claims.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Digital Adoption and Its Significance in TPAs

    3. 4.3 Regulatory Landscape Shaping the Business Ecosystem

    4. 4.4 Market Drivers

    5. 4.5 Market Restraints

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance Type

      1. 5.1.1 Healthcare Providers

      2. 5.1.2 Retirement Plans

      3. 5.1.3 Commercial General Liability Insurance

      4. 5.1.4 Others Insurance Types (Motor Insurance)

    2. 5.2 By Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 Germany

        3. 5.2.2.3 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Rest of Asia-Pacific

      4. 5.2.4 Latin America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 United Arab Emirates

        2. 5.2.5.2 Saudi Arabia

        3. 5.2.5.3 South Africa

        4. 5.2.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview (M&A Deals)

    2. 6.2 Company Profiles

      1. 6.2.1 Sedgwick Claims Management Services Inc.

      2. 6.2.2 UMR Inc.

      3. 6.2.3 Crawford & Company

      4. 6.2.4 Gallagher Bassett Services Inc.

      5. 6.2.5 CorVel Corporation

      6. 6.2.6 Helmsman Management Services LLC

      7. 6.2.7 ESIS Inc.

      8. 6.2.8 Healthscope Benefits

      9. 6.2.9 Maritain Health*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER

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Frequently Asked Questions

The Global Insurance Third Party Administrators Market market is studied from 2018 - 2027.

The Global Insurance Third Party Administrators Market is growing at a CAGR of >5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Sedgwick Claims Management Services Ltd, Crawford & Company​, Maritain Health, UMR Inc., Gallagher Bassett Services Inc. are the major companies operating in Global Insurance Third Party Administrators Market.

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