Third Party Administrator (TPA) State of the Market Report 2020: Industry Facing an Urgent Mandate to Transform

3 Apr 2020
by Skand Bhargava, Somya Bhadola

Third-party Administrators (TPAs) have always been closely involved with the insurance industry due to the pseudo-insurer role they play across the value chain and for almost all product lines. Now, with winds of transformation sweeping across the insurance industry, especially the Property & Casualty (P&C) segment, TPAs must adapt themselves to provide better business outcomes from their services. More importantly, as the TPA industry endeavors to grow through expansions in new geographies, value chain segments, client types, and product lines, it needs to align its services and operating models with changes in demand patterns. While some large TPAs are building requisite capabilities –in talent, technologies, and data – to address the need, most of the industry lags far behind.

In this research, we examine the global TPA market, particularly the P&C and workers’ compensation insurance segments, including changes in client demand patterns and delivery requirements from TPAs, and the role and adoption of digital levers. The study will assist TPAs, self-insured employers and their risk managers, insurers, IT/BPO service providers, and other industry participants in future-proofing their service delivery strategies.

Contents

This report attempts to answer the following key questions:

  • What are the growth opportunities and challenges in the market, and their consequent impact on TPAs’ strategic objectives/needs?
  • Which digital levers are critical to enable TPAs to address their needs/objectives and how?
  • As TPAs begin to embrace digital transformation, what are the key considerations to ensure successful outcomes?

Membership(s)

Insurance - Business Process Outsourcing (BPO)

 

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