Public sector insurance companies are reassessing their investment in Health Insurance Third Party Administrator (TPA) of India, a captive services company, due to its failure to meet objectives. According to sources, a committee consisting of former Oriental Insurance chairman Anjan Dey and other public sector undertaking (PSU) officials has been established to present a roadmap.
A third party administrator (TPA) is a company that handles back-office claims work for health insurance. HITPA, incorporated in 2013 in Delhi, aimed to enhance customer experience and increase efficiency in processing health insurance claims for public sector insurers. Additionally, an anticipated benefit was the reduction of losses in the health insurance portfolio of these insurers.
HITPA is a joint venture between five public sector insurance companies – National Insurance, Oriental Insurance, New India Assurance, United India Insurance, and GIC of India. The PSU insurers collectively invested Rs 120 crore in the TPA to develop the necessary infrastructure.
