Largest Third-Party Administrators

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Third-party administrators (TPAs) provide claims administrative services to businesses. Many serve mid-sized or large companies that have opted to self-insure a portion of their liability, commercial property, or workers compensation risks. They may also administer claims on behalf of businesses that have self-funded their health, dental or other benefit plans. TPAs range in size from very small to very large companies. The 10 largest TPAs are listed in the table below.

Key Takeaways

  • Third-party administrators (TPAs) contract with businesses to handle their insurance claims.
  • The largest TPA in 2020 was Sedgwick Claims Management Services Inc.
  • When choosing a TPA, you must ensure they have the experience, capacity, and quality to handle your needs.

10 Largest Third-Party Administrators

The revenues cited in the following list use 2020 data compiled by Business Insurance.

Largest Third-Party Administrators
Rank Company Revenue (in millions $)
1 Sedgwick Claims Management Services Inc. 3,478
2 UMR Inc. 1,300
3 Crawford & Co. 1,016
4 Gallagher Bassett Services Inc. 973.2
5 CorVel Corp. 592
6 Meritain Health 554
7 ESIS Inc. 404.9
8 Helmsman Management Services LLC 357.14
9 Trustmark Health Benefits Inc. 225
10 Cannon Cochran Management Services Inc., dba CCMSI 172

Services Provided by TPAs

The services provided by a TPA depend on the company's size and complexity. A small TPA may provide only claims processing services for one line of business, such as workers compensation.

Many large TPAs offer administrative services for several types of claims. For instance, Gallagher Bassett can support 10 different industries, including transportation, healthcare, and construction. Gallagher Bassett is a subsidiary of Arthur J. Gallagher, a large insurance broker. Other TPAs may only provide administrative services for employee benefit claims.

Many TPAs provide a variety of services besides claims administration. Here are some areas in which a TPA might provide assistance:

  • Loss control programs
  • Emergency response plans
  • Industrial hygiene inspections
  • Loss adjusting
  • Return to work programs
  • Absence program management (long and short-term disability, jury duty, and other types of leave)
  • Workers compensation audits
  • Forensic accounting


Many TPAs provide a variety of services besides claims administration.

How To Use a TPA With Self-Insurance

The following example demonstrates how a company might use the services of a TPA. ABC Inc. is a large food products manufacturer that has an effective loss control program and a good loss history. ABC thinks it can lower its cost of insurance by self-insuring some of its liability risk. To that end, ABC buys a general liability policy that includes a $250,000 self-insured retention. The policy states that ABC will handle claims that fall below the SIR while the insurer will handle claims that meet or exceed that amount.

ABC wants to avoid the expense of creating and maintaining an in-house claims department. It hires a TPA called Ace Administration to administer its liability claims. If ABC receives a claim for less than $250,000, it forwards that claim to Ace. The TPA investigates the claim, verifies coverage, sets a reserve, establishes liability, and negotiates a settlement with the claimant.

The manufacturer also hires Ace Administration to administer ABC's worker's compensation claims. ABC has purchased a workers compensation policy that includes a $250,000 self-insured retention. The retention applies to losses only, not loss adjustment expenses. The insurer pays all claims and ABC reimburses the insurer for any that fall below the retention. If an employee files a claim that falls below the retention, ABC forwards it to Ace. The TPA conducts an investigation and ensures that the injured worker obtains the benefits he or she is entitled to under the law.

What To Look for When Hiring a TPA

If you are considering hiring a TPA for your business, here are some things to look for.

  • Experience–Make sure the TPA has substantial experience performing the services you need. For instance, if you are looking for a TPA to administer workers compensation claims, you need a company that has a solid track record in that area.
  • Assigned Team–Ask whether the employees assigned to your business have experience handling the type of claims they will be administering.
  • Work Load–Find out how many claims each adjuster is expected to handle. An overloaded adjuster will have difficulty handling your claims effectively.
  • References–Ask the TPA for references. Contact the companies on the list to see whether they are satisfied with the services they have received.
  • Quality Control–What types of quality checks does the TPA conduct to ensure claims are handled properly? What measures does it take to secure data? Does the TPA conduct self-audits?
  • Cost Control–What steps will the TPA take to control costs? For instance, a TPA that administers workers compensation claims might control costs via utilization review, medical bill reviews, and the use of nurse case managers.
  • Data Reporting–Ask the TPA what types of documents it will produce to report data. Ask to see samples of these documents.
  • Compliance–Ask how the TPA stays abreast of state and federal laws. Also, how will it help your company fulfill its legal requirements?

Frequently Asked Questions (FAQs)

How many TPAs are in the U.S.?

There were 181,300 insurance claims and policy processing clerks in the U.S. in 2021. This is the closest classification tracked by the Bureau of Labor Statistics.

How does a TPA make money?

TPAs contract with businesses to handle their claims. The contract will stipulate exactly how the TPA is paid, so it's ultimately up to each entity to determine compensation and write it into the contract.

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The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Business Insurance. "Largest Third-Party Administrators."

  2. Gallagher Basset. "Find Out How Gallagher Basset Helps Reduce Your Total Cost of Risk."

  3. Gallagher Basset. "Our Story."

  4. Bureau of Labor Statistics. "Insurance Carriers and Related Activities: NAICS 524."

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