Welcome to ILSA’s Word of the Week! Today’s word (or actually, phrase) is THIRD PARTY ADMINISTRATOR – often abbreviated to TPA.
A Third Party Administrator is an individual or entity licensed by the state to perform certain administrative functions on behalf of insurance companies.
Specific tasks may include claims administration and payment, marketing administrative functions, premium accounting, premium billing, coverage verification, underwriting, certificate issuance, etc.
Fast Fact: Insurance companies looking to cut overhead costs rely increasingly on TPAs to handle essential tasks, leading to a steady growth in their numbers. Many insurtech firms are also licensed as TPAs.
If you’re interested in becoming licensed as a TPA, visit us at ilsainc.com. And for more WOW moments, don’t forget to click the SUBSCRIBE BUTTON and ring the bell to be notified of new videos!
Confused by all the jargon in the insurance industry? Help is on the way! Welcome to WOW! ILSA’s Word of the Week. Every Wednesday, you’ll learn another key insurance term – including all those pesky acronyms! From Adjuster to Zero Report, we cover them all.
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