Dublin, Feb. 21, 2025 (GLOBE NEWSWIRE) — The “Insurance Third-Party Administrators (TPAs) Market Opportunities and Strategies to 2034” report has been added to ResearchAndMarkets.com’s offering.
The global insurance third-party administrators (TPAs) market reached a value of nearly $342.52 billion in 2024, having grown at a compound annual growth rate (CAGR) of 8.29% since 2019. The market is expected to grow from $342.52 billion in 2024 to $532.24 billion in 2029 at a rate of 9.22%. The market is then expected to grow at a CAGR of 8.77% from 2029 and reach $810.25 billion in 2034.
The global insurance third-party administrators market is concentrated, with a large players operating in the market. The top ten competitors in the market made up to 43.7% of the total market in 2023. CVS Health Corporation (Caremark) was the largest competitor with a 9.35% share of the market, followed by Helmsman Management Services LLC (Liberty Mutual Insurance Company) with 7.92%, United HealthCare Services, Inc with 7.26%, Trustmark Health Benefits Inc. (Health Care Service Corporation (HCSC)). with 7.02%, Sedgwick Claims Management Services Inc (Marsh McLennan). with 3.61%, The Cigna Group. with 2.46%, CorVel Corporation with 1.70%, Kaiser Permanente. with 1.62%, Assured Partners Inc. with 1.54% and Charles Taylor Plc with 1.19%.
Market-trend-based strategies for the insurance third-party administrators (TPAs) market include developing innovative health insurance administration platforms, focus on developing innovative no-code core insurance platforms, focus on developing innovative solutions such as AI-powered claims management and focus on developing innovative solutions in the billing process. Player-adopted strategies in the insurance third-party administrators (TPAs) market include focus on enhancing its operational capabilities through new insurance plan launches and initiatives, and focus on enhancing its operational capabilities through strategic partnerships and acquisitions.
Growth in the historic period resulted from the increasing disposable income, rising emphasis on fraud detection and increased insurance penetration. Factors that negatively affected growth in the historic period were increased focus on self-insurance. Going forward, rising healthcare costs, increasing prevalence of chronic diseases, rising construction projects, economic growth and rise of digitalization will drive the growth. Factor that could hinder the growth of the insurance third-party administrators market in the future include economic downturns.
The insurance third-party administrators (TPAs) market is segmented by type into health plan administrators, third-party claims administration and worker’s compensation third-party claims administration (TPA). The health plan administrators market was the largest segment of the insurance third-party administrators (TPAs) market segmented by type, accounting for 49.70% or $170.24 billion of the total in 2024. Going forward, the health plan administrators segment is expected to be the fastest growing segment in the insurance third-party administrators (TPAs) market segmented by type, at a CAGR of 10.13% during 2024-2029.
The insurance third-party administrators (TPAs) market is segmented by service into claims management, policy management and commission management. The claims management market was the largest segment of the insurance third-party administrators (TPAs) market segmented by service, accounting for 54.63% or $187.12 billion of the total in 2024. Going forward, the claims management segment is expected to be the fastest growing segment in the insurance third-party administrators (TPAs) market segmented by service, at a CAGR of 10.24% during 2024-2029.
The insurance third-party administrators (TPAs) market is segmented by enterprise size into large enterprises and small and medium-sized enterprises. The large enterprises market was the largest segment of the insurance third-party administrators (TPAs) market segmented by enterprise size, accounting for 69.77% or $238.97 billion of the total in 2024. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the insurance third-party administrators (TPAs) market segmented by enterprise size, at a CAGR of 12.40% during 2024-2029.
The insurance third-party administrators (TPAs) market is segmented by application into healthcare, construction, real estate and hospitality, transportation and staffing. The healthcare market was the largest segment of the insurance third-party administrators (TPAs) market segmented by application, accounting for 52.52% or $179.89 billion of the total in 2024. Going forward, the healthcare segment is expected to be the fastest growing segment in the insurance third-party administrators (TPAs) market segmented by application, at a CAGR of 9.65% during 2024-2029.
The insurance third-party administrators (TPAs) market is segmented by end-user into life and health insurance and property and casualty insurance. The life and health insurance market was the largest segment of the insurance third-party administrators (TPAs) market segmented by end-user, accounting for 56.71% or $194.23 billion of the total in 2024. Going forward, the life and health insurance segment is expected to be the fastest growing segment in the insurance third-party administrators (TPAs) market segmented by end-user, at a CAGR of 9.74% during 2024-2029.
North America was the largest region in the insurance third-party administrators (TPAs) market, accounting for 44.97% or $154.02 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the insurance third-party administrators (TPAs) market will be Asia Pacific and South America where growth will be at CAGRs of 11.22% and 10.90% respectively. These will be followed by Middle East and Western Europe where the markets are expected to grow at CAGRs of 9.97% and 8.91% respectively.
To take advantage of the opportunities, the analyst recommends the insurance third-party administrators (TPAs) companies to focus on innovative health insurance administration platforms, focus on no-code core insurance platforms, focus on ai-powered claims management solutions, focus on innovative billing solutions, focus on health plan administrators market, focus on claims management market, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events, focus on small and medium-sized enterprises market, focus on healthcare market and focus on life and health insurance market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 278 |
| Forecast Period | 2024 – 2034 |
| Estimated Market Value (USD) in 2024 | $342.52 Billion |
| Forecasted Market Value (USD) by 2034 | $810.25 Billion |
| Compound Annual Growth Rate | 9.0% |
| Regions Covered | Global |
Top Opportunities
- The top opportunities in the insurance third-party administrators (TPAs) markets segmented by type will arise in the health plan administrators segment, which will gain $105.51 billion of global annual sales by 2029.
- The top opportunities in the insurance third-party administrators (TPAs) market segmented by service will arise in the claims management segment, which will gain $117.52 billion of global annual sales by 2029.
- The top opportunities in the insurance third-party administrators (TPAs) markets segmented by enterprise size will arise in the large enterprises segment, which will gain $107.46 billion of global annual sales by 2029.
- The top opportunities in the insurance third-party administrators (TPAs) markets segmented by application will arise in the healthcare segment, which will gain $105.26 billion of global annual sales by 2029.
- The top opportunities in the insurance third-party administrators (TPAs) markets segmented by end -user will arise in the life and health insurance segment, which will gain $114.84 billion of global annual sales by 2029.
- The insurance third-party administrators (TPAs) market size will gain the most in USA at $68.96 billion.
Major Market Trends
- Advancements in Health Insurance Administration Platforms
- Advancing Claims Processing With No-Code Platforms
- Innovations in AI-Driven Insurance Claims Management
- Advancements in Billing Solutions for Healthcare Providers
Key Mergers and Acquisitions
- Drawbridge Acquires MDM Insurance Services to Strengthen Employee Benefits and Claims Processing
- Gallagher Bassett Services, Inc Acquires Symetri Ltd
- Medi Assist Acquired Paramount Health Services & Insurance
- Bajaj Finserv Acquires Vidal Healthcare Services
- Charles Taylor Bolsters US Presence Through Matrix Companies Acquisition
Scope
- Type: Health Plan Administrators; Third-Party Claims Administration; Worker’s Compensation; Third-Party Claims Administration (TPA)
- Service: Claims Management; Policy Management; Commission Management
- Enterprise Size: Large Enterprises; Small and Medium-Sized Enterprises
- Application: Healthcare; Construction; Real Estate and Hospitality; Transportation; Staffing
- End-User: Life and Health Insurance; Property and Casualty Insurance
For more information about this report visit https://www.researchandmarkets.com/r/fcwjfe
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
- Insurance Third-Party Administrators (TPAs) Market
