At 11.1% CAGR, North America Insurance Third-Party Administrator Market is Projected to be Worth US$ 2,82,490.88 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America insurance third-party administrator market was valued at US$ 1,22,016.25 million in 2023 and is expected to reach US$ 2,82,490.88 million by 2031, registering a CAGR of 11.1% from 2023 to 2031. Digital third-party administrators and proliferation of insurance industry are among the critical factors attributed to the North 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 hamper the growth of North America insurance third-party administrator market.

Based on insurance type, the North America insurance third-party administrator market is segmented into healthcare, retirement plans, commercial general liability insurers, and other insurance types. The healthcare segment held 53.2% market share in 2023, amassing US$ 64,922.83 million. It is projected to garner US$ 1,58,515.05 million by 2031 to register 11.8% CAGR during 2023-2031.

In terms of end users, the North America insurance third-party administrator market is bifurcated into large enterprises and SMEs. The large enterprises segment held 61.0% share of North America insurance third-party administrator market in 2023, amassing US$ 74,414.04 million. It is projected to garner US$ 1,82,542.37 million by 2031 to expand at 11.9% CAGR during 2023-2031.

Based on country, the North America insurance third-party administrator market has been categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 89.9% share of North America insurance third-party administrator market in 2023. It was assessed at US$ 1,09,645.19 million in 2023 and is likely to hit US$ 2,58,958.48 million by 2031, exhibiting a CAGR of 11.3% during 2023-2031.

Key players operating in the North America insurance third-party administrator market are Sedgwick; Crawford and Company; CorVel Corp; UnitedHealth Group Inc; Liberty Mutual Insurance Company; Charles Taylor Limited; ExlService Holdings, Inc; Arthur J Gallagher & Co; Meritain Health; and Chubb Ltd., among others.

• In May 2024, Sedgwick has announced several new updates to its artificial intelligence-powered (AI) technology program. Building on a half-century of claims handling excellence and a robust data science program. The technology goal is to expedite the claims process by predicting, addressing, and automating steps in the claim lifecycle, thereby enhancing consumer experiences and streamlining claim resolutions.
• In May 2022, Crawford & Company's third-party administration business in the United Kingdom, Crawford TPA, has teamed with British insurtech Automated Insurance Solutions (AIS) to support speedier motor claims processing in the country. Crawford TPA will use AIS's automated motor claims liability assessment tool, BAIL, as part of its growing digital claims management ecosystem.
  
  

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