Comparative Assessment of External Third Party Administrators and In-house Teams of Insurers in Health Insurance Claims Settlement Process in Bangalore, India

Claim servicing in health insurance is an important area for insurers. Third party administrators (TPAs) are a critical link in India that process health insurance claims. Several insurers have started in-house claim teams for health insurance claims instead of outsourcing the work to TPAs. The study aims to explore the role played by external TPAs in terms of value addition done by them for insurers, policyholders and healthcare providers. The study aims to find the benefits of roping in an in-house team to settle health claims and the benefits accruing out of this decision to policyholders and hospitals. The role of TPAs in claim processing, issues faced by customers while making a claim, and improvement areas in the process have also been examined. The author has tried to explore and research this area so that policyholders can choose a health insurance company without bias whether it has an in-house claim settlement process or engages an external TPA. The study brings out the concerns of customers and hospitals regarding the settlement of health insurance claims and suggests improvement areas required for both TPAs and in-house teams in claim settlements by evaluating the same.