At 6.2% CAGR, South & Central America Insurance Third-Party Administrator Market is Projected to be Worth US$ 9,010.59 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the South & Central America insurance third-party administrator market was valued at US$ 5,562.77 million in 2023 and is expected to reach US$ 9,010.59 million by 2031, registering a CAGR of 6.2% from 2023 to 2031. Digital third-party administrators and growing complexity of insurance claims are among the critical factors attributed to the South & Central America insurance third-party administrator market expansion.

Digital third-party administrators are transforming the insurance third-party administrator business by harnessing the capabilities of AI and machine learning, which can allow the scanning of massive volumes of data to detect fraudulent claims and predict future hazards. The advanced data management capabilities lower costs for insurers and allow them to make more educated underwriting and risk management decisions. Digital third-party administrators provide self-service portals for policyholders to file claims, track their progress, and access policy papers. This promotes transparency and convenience, resulting in a more positive consumer experience. In October 2023, LIDP partnered with Sutherland, a global digital-first business process as a service (BPaaS) provider, to introduce innovative, comprehensive solutions. Digital tools and AI drive middle-office and back-office digitization customer experience (CX) and provide more precise insights into insurance carrier businesses. Their unique approach empowers carriers to fast-track life insurance and annuity product launches, enhance distribution, and improve customer experience. In September 2021, Xceedance (an insurance consultancy firm) introduced a new digital claims third-party administrator with enhanced and intelligent automation. The new solution offers full-service claims operation services to global insurers with the goal of closing claims faster and providing more visibility into claim handling and status. The new third-party administrator takes advantage of Xceedance's broad range of insurance, technical, and operational capabilities. Thus, the digital third-party administrator is setting a new trend in the insurance third-party administrator market.

On the contrary, data privacy and security concerns hampers the growth of South & Central America insurance third-party administrator market.

Based on insurance type, the South & Central America insurance third-party administrator market is segmented into healthcare, retirement plans, commercial general liability insurers, and other insurance types. The healthcare segment held 70.4% market share in 2023, amassing US$ 3,916.04 million. It is projected to garner US$ 6,465.24 million by 2031 to register 6.5% CAGR during 2023-2031.

In terms of end users, the South & Central America insurance third-party administrator market is bifurcated into large enterprises and SMEs. The large enterprises segment held 76.6% share of South & Central America insurance third-party administrator market in 2023, amassing US$ 4,262.68 million. It is projected to garner US$ 7,012.95 million by 2031 to expand at 6.4% CAGR during 2023-2031.

Based on country, the South & Central America insurance third-party administrator market has been categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that Brazil captured 70.4% share of South & Central America insurance third-party administrator market in 2023. It was assessed at US$ 3,916.47 million in 2023 and is likely to hit US$ 6,617.88 million by 2031, exhibiting a CAGR of 6.8% during 2023-2031.

Key players operating in the South & Central America insurance third-party administrator market are Crawford and Company; Charles Taylor Limited; Arthur J Gallagher & Co; and Chubb Ltd., among others.

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