Increasing Preference for Administrators in Health Insurance Boosts Insurance Third-Party Administrators Market Growth
According to our latest study titled “Insurance Third-Party Administrators Market Forecast to 2031 – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Insurance Type and End Users,” the market was valued at US$ 413.50 million in 2024 and is projected to reach US$ 681.16 million by 2031. The market is estimated to register a CAGR of 7.6% during 2025–2031. The report includes growth prospects in light of current Insurance Third-Party Administrators market trends and factors influencing the market growth.
Third-party administrators serve as mediators between insurance companies and policyholders. They oversee specific services, such as processing claims, providing customer support, and managing payment transactions on behalf of health insurance companies. These service providers maintain policyholders' important records in a dedicated database and provide smooth back-end assistance. Moreover, these administrators ensure the correct processing of policyholders' claims. They guarantee that hospitals meet the standards of network membership, allowing for hassle-free claim settlement. Various value-added services provided by several third-party administrators include specialized consultations, ambulance services, medical supplies, wellness programs, lifestyle management, 24-hour toll-free helplines, and health facilities. Due to these benefits, various renowned insurers opt for third-party administrators. For example, insurers such as Oriental Insurance, New India Assurance, National Insurance, and United India are using Vidal Health Insurance TPA, Health Insurance TPA of India Ltd, Focus Health Services TPA Pvt. Ltd, Family Health Plan Insurance TPA Limited. According to policybazaar.com, the health sector is expected to witness another big leap as the Health Insurance Third Party Administrator (TPA) of India is going to begin its operations on July 1, 2025. The main role of the division is to manage health claims of public general insurers exclusively. Thus, increasing demand for third-party administrators in healthcare insurance drives the market growth.
Insurance Third-Party Administrators Market – by Region, 2024 and 2031
Insurance Third-Party Administrator Market Size and Forecast (2021-2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: by Insurance Type (Healthcare, Retirement Plans, Commercial General Liability Insurers, and Other Insurance Types), End Users (Large Enterprises and SMEs), and Geography
Insurance Third-Party Administrator Market Forecast 2031
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Source: The Insight Partners Analysis
The Insurance Third-Party Administrators market analysis has been carried out by considering the following segments: Insurance type and end users. Based on type, the market is segmented into healthcare, retirement plans, commercial general liability insurance, and others. In terms of end user, the market is bifurcated into large enterprises and small and medium-sized enterprises. The large enterprises segment held a larger Insurance Third-Party Administrators market share in 2024.
The scope of the Insurance Third-Party Administrators market report is segmented into North America (US, Canada, and Mexico), Europe (Russia, UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (UAE, Saudi Arabia, South Africa, and the Rest of MEA), and South & Central America (Brazil, Argentina, and the Rest of SAM). North America accounted for the largest Insurance Third-Party Administrators market share in 2024. Businesses in this region widely adopt advanced solutions to simplify their business workflow and operations. Continuous digitalization in the insurance industry is fueling the insurance third-party administrator market size in North America. In October 2023, LIDP partnered with Sutherland, a global digital-first business-process-as-a-service (BPaaS) provider, to introduce innovative, comprehensive solutions. Digital tools and AI drive middle-office and back-office digitization and customer experience (CX), along with providing more precise insights into the insurance carrier business and growth.
In March 2023, Continental General Insurance Company (with its affiliates, Continental General or the Company) announced the strategic expansion of its platform by relaunching as a third-party administrator. The company served ~100,000 policyholders across the life and accident, and health insurance categories, and offers operational and administrative support services, ranging from claims auditing and claims processing to full policy administration. In November 2024, A-G Specialty Insurance, a leading provider of specialized insurance solutions for educational institutions and sports organizations, announced its acquisition of First Agency TPA, A Gallagher Company, with a well-established reputation for student and athletic accident coverage. This acquisition builds upon A-G’s previous acquisition of Gallagher’s Bollinger TPA services. A-G’s strategic acquisitions of both Gallagher’s Bollinger TPA and Gallagher’s First Agency TPA highlight the company’s commitment to expanding its capacity and expertise in TPA services. By combining the strengths of these two premier TPA providers, A-G is uniquely positioned to offer a more robust, streamlined insurance solution that benefits educational institutions, students, and student-athletes across the country.
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 Administrators market report.
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