Now that the initial enrollment period for health care is over, it's time to sift through the data and get ready for the next enrollment period.
According to IBISWorld industry analyst Doug Kelly,“ Since 2001, industry growth has been driven by a steady increase in outsourcing activities within the insurance and pension fund sectors because operators have looked to cut costs to improve profitability.”...
Los Angeles, CA (PRWEB) September 24, 2012
The US Third-Party Administrators and Insurance Claims Adjusters industry plays a critical role in the insurance and funds sectors by allowing businesses to outsource certain functions, such as claims processing and adjusting, policy and fund administration and risk management and actuarial services. According to IBISWorld industry analyst Doug Kelly, “Since 2001, industry growth has been driven by a steady increase in outsourcing activities within the insurance and pension fund sectors because operators have looked to cut costs to improve profitability.” Additionally, operators have benefited from an increase in demand for risk management and other insurance advisory services. For insurers, industry operators develop underwriting techniques and models that properly price risk, while businesses and other organizations seek out operators to mitigate liabilities and lower insurance costs.
In the five years to 2012, industry revenue is expected to increase at an average annual rate of 3.1% to $60.4 billion. “Despite the Great Recession,” says Kelly, “the industry experienced only one down quarter during this period.” A rise in claims adjustment outsourcing, the growing market for third-party administrative services and higher demand for actuarial, consulting and risk advisory services drove strong revenue gains. Operators also benefited from a spike in property and casualty claims related to a surge in weather-related catastrophes in 2008.
The US Third-Party Administrators and Insurance Claims Adjusters industry has a low level of concentration and a high level of fragmentation. The top three players are expected to account for less than one-fifth of industry revenue in 2012. According to the US Census and IBISWorld estimates, about 55.4% of industry employer enterprises contain fewer than five individuals. Conversely, about 1.7% of industry firms employ more than 250 people. The industry can be separated into three main sectors: claims adjusting, third-party administration of insurance and pension funds and all other insurance-related activities. The risk management and consultancy segment comprises the three largest industry players, Marsh & McLennan Companies, Aon Corporation and Willis Group Holdings, while the others are more segmented. Risk managers and insurance consultants benefit from economies of scale since they need information and sophisticated models and analytics for their operations and recommendations. In contrast, claims adjusters, appraisers, examiners and investigators need strong knowledge of local markets since these firms make determinations of damage and liability related to insurance policy coverage and claims.
In 2012, industry revenue is expected to increase about 1.1% as individuals and businesses slowly expand insurance coverage in an improving economy. Over the five years to 2017, industry revenue is expected to continue increasing. Pension funds and direct insurers will continue to increase outsourcing activities, which will drive growth. As the economy recovers, insurance policy volumes will rise, particularly within the business sector; generally, an increase in the number of policies leads to a rise in the need for claims adjustment services. Operators will also benefit from an increased demand for risk management services and data analytics because businesses, insurers and individuals use these services to mitigate risks and hedge liabilities.
For more information, visit IBISWorld’s Third-Party Administrators & Insurance Claims Adjusters in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry is composed of three segments: claims adjusting; third-party administration of insurance; and pension funds and insurance consulting and advisory services. The first segment includes investigating, appraising and settling insurance claims; the second consists of claims processing and administrative services; and the third focuses on insurance advisory or risk management operations. Insurance brokerage and sales are not included in this report (see IBISWorld report 52421).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Read the full story at http://www.prweb.com/releases/2012/9/prweb9932439.htm