DEFINITION of 'Third-Party Claims Administrator'
This type of administrator processes claims for a third-party company. Insurance companies and employee benefit providers often employ third-party administrators to process their claims. These administrators also often help to process employee retirement plans and flexible spending accounts.
BREAKING DOWN 'Third-Party Claims Administrator'
Third-party administrators are used most commonly by health and commericial liability insurance providers. Life insurance carriers generally process their own claims. Many investment firms that manage retirement plan assets also outsource this service in order to better focus on investment management.