Insurance third party administrators market to reach $501.93b by 2028

Major trends include blockchain integration and predictive analytics.

The insurance third party administrators (TPA) market is set to reach $501.93b by 2028 with a compound annual growth rate of 10%, according to a study by The Business Research Company.

Key factors driving this growth include the increasing prevalence of chronic diseases, the growing complexity of insurance operations, expanded health coverage, heightened emphasis on fraud detection, and a demand for greater operational transparency. 

Major trends in the market include integration of blockchain technologies, artificial intelligence and machine learning adoption, product innovations, and the use of predictive analytics.

Fraud detection is also expected to be a significant growth driver in the TPA market as enhanced security measures and robust internal controls help reduce fraud-related losses, the report said.

In 2024, the TPA market grew to $342.52b, up from $312.06b the previous year. This growth has been fuelled by rising demand for TPAs, increasing disposable incomes, greater insurance penetration, and the growing adoption of TPAs within the health insurance sector.