Third-Third Party Administrator (TPA)
The Third-Party Administrator (TPA) market is massive, totaling ~$250b in revenue in 2019, and growing at a 5% pace over the last five years according to IBISWorld. TPAs play an important role by allowing insurance carriers, pension funds, welfare funds, workers’ comp funds, and self-insureds to cut costs and improve efficiency by outsourcing a number of services (claims processing, administrative services, loss control, etc.). Given the mission-critical role TPAs fill, size and scale are of increasing importance. In order to survive, TPAs that are not massive in scale will need to rely on technology solutions in order to differentiate themselves in this highly competitive market.