A third-party administrator (TPA) is an organization that handles insurance claims or certain aspects of personal pension plans for a separate unit.  It is also a term used to define organizations within the insurance industry that manage other services such as underwriting, customer service. This can be considered as an outsourcing of claims management, given that the TPA performs a task traditionally performed by the insurance undertaking or the undertaking itself. Often, for insurance claims, a TPA takes care of the processing of claims for an employer who insures its employees itself. Thus, the employer acts as an insurance company and bears the risk. The risk of loss remains with the employer and not with the TPA. An insurance company may also use a TPA to manage its claims processing, supplier networks, usage control or affiliation functions. While some third-party directors may act as units of insurance businesses, they are often independent. [Citation required] APTs, which cover most of the above services, are sometimes referred to as „complete ATP“. Some TPs limited to a single insurance seam (e.g.B. dentistry) may be called special APTs. Liability managers for commercial liability insurance providers behave in the same way as claims management agents and can cooperate with the insurance company`s internal claims regulator as well as external investigators and defense lawyers. The third party`s claims manager can even choose the defense lawyer.
Third-party claims managers are often used by health insurers that will outsource many of their administrative functions. Not only claims management, but also premium billing, customer registration and other day-to-day operations are often settled in this way. The use of third-party administrators is now common in many organizations, and the range of tasks they perform is growing. They have different roles in the health insurance sector, commercial liability insurance and the activities of investment companies. Some companies are moving into new areas such as forensic accounting services, workers` compensation reviews, and contingency planning. A hospital or health organization that establishes its own health plan often outsources administrative responsibilities to third parties. A company that chooses to fund its employee health insurance plan on its own usually enters into contracts with an external claims manager to run the program. A third-party administrator is a company that provides various administrative services on behalf of an insurance plan, for example.B. a health plan. . .