What Does Third Party Administration Mean?
Third party administration is a a company that is often hired by an employer to take care of certain administrative responsibilities. The purpose of employers hiring these firms is to lessen the workload for themselves. Responsibilities that these companies may handle include risk management, claims administration, loss control, and a number of others.
Insuranceopedia Explains Third Party Administration
It often makes more sense for companies to hire third party administration companies that it does for them to try to handle all of the administrative responsibilities themselves. Third party administration firms specialize in administrating insurance policies. They often work as an intermediary between the insurer and the company. By letting third party administrators handle the administration of insurance parties, companies can focus on other things, such as the making of profits, and other important things.