Third party administrator services Category Intelligence
Report Coverage
- Market Analysis
- Market Trends
- Trends that Impact the Claims Industry
- Cost Structure Analysis
Production Size
Global Production Size/ Capacity
$271 billion
Third party administrator services Market Trends
Category Intelligence on Third party administrator services covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Third Party Administrator Services Global Market Outlook:
TPA Service North American Market Size (2020 Estimate): $271 billion
Porter's Analysis on Third Party Administrator Services
Supplier Power
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The TPA industry is currently dominated by few players. The industry is fragmented, in terms of service providers and their industries, with only a few being category- specific to TPA
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As a result, it limits the service provider’s power to medium
Barriers to New Entrants
- Increasing process complexity, technology sophistication, and established service providers are high barriers for new entrants
- Currently, buyers prefer working with the preferred service providers, having strong domain expertise and able to cater to a wide range of requirements
- It requires high initial investments and skilled labor to cater to the needs of mature buyers
Intensity of Rivalry
- The top players account for more than 60 percent of the overall market. The latest trend is that medium-sized players combine with niche players to provide integrated services
- All players compete on the similar platforms, such as technology and service delivery capabilities, and not pricing exclusively. Hence, the intensity of rivalry is medium
Threat of Substitutes
- The cost of carrying out claim management services in-house is high and its process efficiency is lesser compared to outsourcing
- The access to the world-class delivery, a trained workforce, increase in spend visibility, and most importantly, the focus the buyer gets on core activities because of outsourcing makes sourcing in TPA less susceptible to the threat of substitutes
Buyer Power
- For global/regional engagements, and/or end-to-end services with market leaders, the buyers have relatively medium bargaining power, as there are no service providers that match them in end-to-end service delivery capabilities, category expertise, and geographic reach
