Global TPA Market to Reach $514.98 Billion by 2030

Sacramento, CA - There is rapid demand for insurance third party administrator (TPA) for handling the claims of worker’s compensation offered by employment firms under employee benefits. In addition, TPAs are used to manage company’s group benefits, particularly health, workers compensation, and dental claims that are typically self-funded.

A new study published by Allied Market Research reports that the insurance third party administrator market size was valued at $280.69 billion in 2020, and is projected to reach $514.98 billion by 2030, growing at a CAGR of 6.3% from 2021 to 2030.

Rapid adoption of third party administrators in the health insurance industry and rise in need for operational efficiency & transparency in insurance business process are some of the factors propelling the insurance third party administrator market growth. However, security issues and privacy concerns are the major factors limiting the market growth.

On the contrary, technological advancements in third party administrator, such as adoption of Internet of things (IoT), artificial intelligence, machine learning, and robotics process automation, have led to the growth of the insurance third party administrator industry.

Furthermore, artificial intelligence technology has claims administration with predictive outcomes, wherein a low-cost claim can be identified automatically through processing & eliminating the need for claim adjustment intervention. Thus, the demand for insurance third party administrator market is expected to grow tremendously in the coming years.

The insurance third party administrator market is fragmented with the presence of regional vendors such as CRAWFORD & COMPANY, SEDGWICK, and Charles Taylor. North America dominated the insurance third party administrator market, in terms of revenue in 2020, and is expected to retain their dominance during the forecast period. However, Asia-Pacific is anticipated to experience significant growth in the future as insurance TPAs play an important role in terms of enhancing customer relationships and delivering niche & unique insurance third party administrator services in this region.

The report analyzes the profiles of key players operating in the insurance third party administrator market such as Charles Taylor, CORVEL, CRAWFORD & COMPANY, ESIS, ExlService Holdings, Inc., GALLAGHER BASSETT SERVICES, INC., Helmsman Management Services LLC, Meritain Health, SEDGWICK, and United HealthCare Services, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the insurance third party administrator market.

The outbreak of COVID-19 is anticipated to provide growth opportunities for the Insurance third party administrator market expansion during the forecast period, owing to rise in digital transformation trend in insurance and surge in demand for third party administration solutions that are hosted or managed on the cloud.

Moreover, during the pandemic, there is a rising number of claims in health insurance. Therefore, to effectively handle such high number of claims, the insurance companies are heavily investing in third party administrator services. Thus, these factors ensure that insurance companies are considering third party administrators for improving cost efficiency and business operations during the pandemic situation.

Source: WorkCompAcademy.com

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