According to our latest study on "Insurance Third-Party Administrator Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Deployment, Enterprise Size, Industry Vertical," the insurance third-party administrator market size was valued at US$ 256.02 billion in 2023 and is expected to reach US$ 544.67 billion by 2031; it is estimated to record a CAGR of 9.9% from 2023 to 2031.
The insurance third-party administrator market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by APAC and Europe, respectively. The Europe insurance third-party administrator market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. In terms of revenue, UK dominated the insurance third-party administrator market share. The UK government's stringent regulations toward TPA boost the France insurance third-party administrator market growth in the UK. According to the UK government, the insurance company may delegate the administration of a cost-plus scheme to a TPA, who may issue policies, collect premiums, and perform similar services on behalf of the insurer. If any payment made to the TPA is due under a contract of insurance, then it is a part of the value of the premium and so is liable to insurance premium tax (IPT). Due to such regulations, the insurance companies partner with the third-party administrator to process claims raised under a health insurance policy and give quality services to the customers.
Germany is experiencing a significant rise in the number of international students due to the presence of prestigious universities and great career opportunities. For visa approval to move to Germany, students are required to meet certain requirements related to financial requests, health insurance, accommodations, and other things. This factor bolsters the demand for health insurance in Germany for students to protect them in case of unforeseen and undesirable events. For this, the market players are launching solutions for international students. In February 2024, Expatrio launched repatriation insurance in partnership with ELEMENT Insurance. The launch of such solutions, coupled with the rising number of students, generates demand for third-party administration services in the country.
Key Findings of Insurance Third-Party Administrator Market Study:
The insurance third-party administrator market is segmented into type, and end user. Based on type, the market is segmented into healthcare, retirement plans, commercial general liability insurance, and other insurance types. In terms of end user, the market is categorized into large enterprises, and small and medium-sized enterprises. By geography, the insurance third-party administrator market is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.
Based on type, the market is segmented into healthcare, retirement plans, commercial general liability insurance, and other insurance types. The healthcare segment held the largest insurance third-party administrator market share. Third-party claims administrators in health insurance serve as a mediator between insurance providers and policyholders. It is a vital component of health insurance, allowing individuals to get easy access to insurance benefits. One of the primary functions of third-party claims administrator is to provide policyholders with assistance in claiming benefits. They also provide policyholders with information about hospitals covered under their policy and the doctors associated with these hospitals, along with the medical facilities available. third-party claims administrator benefit policyholders through hassle-free claiming of insurance benefits and effective management of insurance claims.
TPAs are in charge of employee retirement schemes such as 401(k) plans in the US. In such circumstances, investment firms may own or operate the company in part. An investment company manages the money, while a third-party administrator handles day-to-day account operations and customer service functions. The administrators can manage many day-to-day aspects of employee retirement plans. They can also take up responsibilities such as designing retirement plan documents, preparing employer and employee benefit statements, ensuring compliance with the Internal Revenue Service' (IRS) nondiscrimination requirements, and drafting annual returns reports required by IRS, DOL, or other government agencies. A few of the third-party claims administrators are offering services for this type of insurance include RiversEdge Advanced Retirement Solutions LLC and The Pension Service, Inc.
Sedgwick, Crawford and Company; CorVel Corp.; United Healthcare Services LLC; Helmsman Management Services, LLC; Charles Tayler; ExlService Holdings, Inc.; Gallagher Bassett Services LLC; and Meritain Health, Inc are among the key players profiled in the insurance third-party administrator market report. Several other major players were studied and analyzed during the insurance third-party administrator market analysis to get a holistic view of the market and its ecosystem. The insurance third-party administrator market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current insurance third-party administrator market trends and their foreseeable impact during the forecast period.
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