Third Party Administrators (TPAs) and Insurance BPO service providers are the two types of entities that insurers engage with when it comes to third-party outsourcing of industry-specific processes. This viewpoint provides detailed understanding of the TPA space, coverage of insurance segments, regulatory & licensing requirements in key geographies, engagement models with insurers, self-insuring employers, government, asset management firms, and healthcare providers.
The paper also examines how TPAs are differentiated from BPOs in terms of process coverage, shoring model, technology leverage, regulatory status, talent model, pricing, and governance. It further illustrates the diminishing degree of differences between them making their coexistence more dynamic and the advent of BPO+TPA players.
It also helps insurers in understanding the appropriateness of entities (TPA or BPO or BPO+TPA) based on outsourcing drivers and provides Everest Group’s point of view on what the future of outsourcing is going to look like in insurance industry.
Insurers have been leveraging Third Party Administration (TPA) providers to service the complete Life and Annuities ( L&A) insurance value chain. TPA providers have traditionally managed policy administration of the run-off blocks that were discontin…
