Today, U.S. corporations can take a more global view of how insurance is placed and more interest in how claims are managed. They are looking to adopt more control around costs and, as such, are willing to carry risks themselves through higher retention rates. This drives a need for TPAs to manage the sub-deductible work. (Credit: OpturaDesign/Adobe Stock)
Reports suggest that the global third-party administration (TPA) market will grow by 6.3% a year, with a market value projected to be $515 billion by 2030, compared to $281 billion in 2020. What is fuelling this mega growth in the USA? And how will the market develop?
Ongoing tough market conditions, a challenging economy and increasing globalization are at the root of this trend. From a rise in catastrophic activity across the world to growing areas of civil unrest, sophisticated state-sponsored cyberattacks, a global pandemic and the military invasion of Ukraine, there are new and unprecedented risks to be managed.
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