Insurance providers, especially in health, commercial liability, and investment companies, often outsource liaison functions between themselves and the policyholders. Rather than commit resources, such as staff, to investigate, verify, and settle claims, the insurance companies outsource the tasks to a third party known as a third-party administrator. When the insured makes a claim, the third-party administrator ensures due diligence in processing and a seamless claim settlement.
One type of third-party administrator is for commercial liability insurance providers. Akin to claim adjusters, they work with the insurer’s internal claims adjuster, external claims investigators, and defense attorneys. In some cases, the administrator can select their choice of defense counsel. The range of services depends on the size. Individual third-party administrators handle small claims, while others are large multinational non-insurance companies—the latter focus on claims involving large corporations.
The second type, the retirement plan administration, manages employee retirement programs. In most cases, the administrator is part of an investment company, where the company focuses on finance management. In contrast, the third-party administrator handles daily accounts management and customer support services.
Kirk Fisher 