Since the Lehman implosion of 2008 and subsequent global recession, Third Party Administrators (TPAs) have faced the reality of lower fees and assets under management, leading to reduced margins and revenues. At the same time, client demands and expectations are higher than any that administrators have previously encountered.
Whilst this is certainly a challenge for administrators, every market change provides opportunities for those willing to adapt. Maybe surprisingly to some, it is often the case that the largest and “best” players are the most reluctant or the slowest to adjust. Firms that are willing to quickly respond to change can survive and even thrive in the current market by offering expandedor diversified services to clients while increasing the efficiencies in their own businesses.