Insurance Third-Party Administrator Market is expected to reach US$ 544.67 Billion by 2031

Growing Complexity of Insurance Claims Fuels Insurance Third-Party Administrator Market Growth

According to our latest study, "Insurance Third-Party Administrator Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, End User, and Geography," the market 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 report includes growth prospects owing to the current insurance third-party administrator market trends and their foreseeable impact during the forecast period.    

Claims management in insurance refers to the systematic process of handling and settling insurance claims filed by policyholders. This crucial job in the insurance industry involves handling everything from the initial claim filing to the ultimate payout or denial. Insurance claim settlement is required to ensure that policyholders receive the compensations and other benefits they are entitled to. There are multiple types of insurance policies available with their specific coverage limits, deductibles, and exclusions; therefore, business owners may struggle to negotiate insurance claims. Moreover, a large number of individuals suffer delays, arguments, and denial in the claim process. The claims process can be complex since it requires extensive documentation, communication with insurance adjusters, and adherence to specific dates. A thorough documentation of the claim includes gathering evidence, witness statements, and any other pertinent details. Investigators may also be hired to evaluate complex claims involving big losses or alleged fraud. Claim commencement, appraisal, adjustment, and final settlement are typical stages in the claim process. Each level is critical, necessitating precise documentation and discussions with insurance companies.

Insurance Third-Party Administrator Market Analysis — by Geography

Source: The Insight Partners Analysis

The insurance industry is highly regulated, and need to comply with multiple state and federal rules can be difficult. Third-party administrators play a vital role in settling insurance claims. They also serve a crucial role in administering insurance policies and claims on behalf of policyholders. The primary responsibility of any third-party administrator is to help policyholders during the claim settlement process between the policyholder and the insurer. This process begins when policyholders report their claims to their insurance companies. It entails obtaining critical data such as the insurance number, incident details, and contact information. Thus, the growing complexity of insurance claims bolsters the third-party administrator market growth.

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 also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the insurance third-party administrator market forecast by 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 revenue, the healthcare segment held the largest insurance third-party administrator market share and is expected to record the highest CAGR during the forecast period.

The scope of the insurance third-party administrator market report focuses on North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC, respectively.

The Asia Pacific insurance third-party administrator market is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest insurance third-party administrator market share in APAC in 2023. China's healthcare insurance sector is driven by the growing awareness regarding the benefits provided by life and health insurance products, such as coverage of health-related risks, including long-term care and longevity. According to the National Bureau of Economic Research (NBER), in 2021, China was the second-largest insurance market in terms of premium, after the US. According to the National Financial Regulatory Administration, the total premium revenue of insurance companies in China increased from 2009 to 2022. The amount surged from CNY 1,113.73 billion (US$ 153.61 billion) in 2009 to CNY 4,695.72 billion (US$ 647.64 billion) in 2022. Thus, such statistics represent a strong insurance industry in China, contributing to the growth of the insurance third-party administrator market

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