Merritt Personal Lines Manual: Chapter 7 Third-Party Administrators

A third-party administrator is a firm which provides administrative services for your employer or other associations having group insurance policies. The third-party administrator acts as a liaison between the insurance company and your employer in matters such as certifying eligibility, preparing reports required by the state and processing claims.

The use of third-party administrators became common in the 1990s, as a result of larger employers self-funding health benefits.