Third-party Administrator

Definition

• An insurance claims administrator that processes insurance claims, and some aspects of employee benefit plans, for another entity. Because most insurance companies administrate their own claims, using a third-party administrator (TPA) is often viewed as "outsourcing."

Synonyms
claims administrator, insurance claims agent

Acronyms
TPA

Related Terms and Acronyms

• Broker-Agent — Definition,
  • An individual, usually in the employ of an insurance company, that is licensed as both an insurance broker and agent.
• Claims Adjuster — Definition,
  • An individual who ascertains the insurer's liability after an insurance claim has been made.
• Direct Writer — Definition,
  • An individual who writes insurance policies directly for an insurer.