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

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  • 130 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5530214
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.

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.

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%.

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.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Digital Adoption and Its Significance in TPAs
4.3 Regulatory Landscape Shaping the Business Ecosystem
4.4 Market Drivers
4.5 Market Restraints
4.6 Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the market
5.1 By Insurance Type
5.1.1 Healthcare Providers
5.1.2 Retirement Plans
5.1.3 Commercial General Liability Insurance
5.1.4 Others Insurance Types (Motor Insurance)
5.2 By Geography
5.2.1 North America United States Canada
5.2.2 Europe United Kingdom Germany Rest of Europe
5.2.3 Asia-Pacific China India Rest of Asia-Pacific
5.2.4 Latin America
5.2.5 Middle-East and Africa United Arab Emirates Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Market Concentration Overview (M&A Deals)
6.2 Company Profiles
6.2.1 Sedgwick Claims Management Services Inc.
6.2.2 UMR Inc.
6.2.3 Crawford & Company
6.2.4 Gallagher Bassett Services Inc.
6.2.5 CorVel Corporation
6.2.6 Helmsman Management Services LLC
6.2.7 ESIS Inc.
6.2.8 Healthscope Benefits
6.2.9 Maritain Health*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Sedgwick Claims Management Services Inc.
  • UMR Inc.
  • Crawford & Company
  • Gallagher Bassett Services Inc.
  • CorVel Corporation
  • Helmsman Management Services LLC
  • ESIS Inc.
  • Healthscope Benefits
  • Maritain Health*