APAC’s insurance third-party administrator market to reach $515b by 2030

Globally, it is seen to reach $515b by 2030.

Asia Pacific’s insurance third-party administrator (TPA) market is expected to bag the highest compound annual growth rate (CAGR) of 8.9% by 2030, driven by increasing healthcare costs and rising disposable incomes in the region, according to Allied Market Research. 

Meanwhile, global TPA market, generated $280.69b in 2020 and is expected to reach $514.98b by 2030. This would entail a CAGR of 6.3% from 2021 to 2030. 

TPAs act as intermediaries between insurers and policyholders, streamlining claim settlements and improving service quality amid rising demand in the health insurance sector.  

The growing adoption of TPAs in the health insurance industry and the need for enhanced operational efficiency and transparency are primary factors driving market growth. 

However, concerns over data security and privacy pose challenges. Technological advancements in TPA services, including cloud-based solutions, are anticipated to create opportunities in the market.  

Large enterprises held the largest market share in 2020, accounting for nearly two-thirds of the global TPA market, due to their focus on mitigating risks from changing regulations. 

Meanwhile, small and medium-sized enterprises (SMEs) are projected to have the highest CAGR of 7.4% through 2030 as more SMEs turn to TPAs for administering self-funded benefit plans.  

North America led the market in 2020, contributing nearly 60% of total revenue, due to widespread adoption of health insurance and a favourable regulatory environment in the US. 

The report highlights the growing significance of TPAs in streamlining insurance processes and addressing challenges, positioning the market for robust growth over the next decade.