Insurance third-party administrator market set to more than double by 2032

Growth is driven by rising demand for health insurance.

The global insurance third-party administrator (TPA) market is projected to more than double over the next decade, according to a report by Allied Market Research.

The market, valued at $324.9b in 2022, is expected to reach $795.1b by 2032, growing at a compound annual growth rate of 9.6%.

Asia-Pacific is expected to post significant growth through 2032, fuelled by economic expansion, a growing middle class and rising demand for insurance products. North America led the market in 2022, supported by high healthcare costs and strong demand for claims administration services. 

Growth is being driven by rising demand for health insurance, greater use of outsourcing in claims processing, and the push for efficiency and transparency across the insurance sector. 

TPAs provide services such as claims and policy management, acting as intermediaries between insurers and policyholders to facilitate claim settlements.

Life and health insurance accounted for the largest share of the market in 2022 and is expected to remain dominant, supported by TPAs’ role in billing, data analysis and claims settlement. 

The property and casualty segment, however, is forecast to see the fastest growth as insurers seek cost savings and efficiency in handling large or complex claims.