At your service: As the number of people with private health insurance slows, industry revenue will decrease

Operators in the Benefit Administration Services industry assist organizations with establishing, maintaining and managing their employees' benefits. Demand for industry services depends on conditions in the labor market and companies' propensity to outsource the administration of their employees' benefits. IBISWorld expects industry revenue to increase over the five years to 2018, as employment and corporate profit increased, boosting demand for industry services. Additionally, an increase in the number of insured individuals caused by healthcare reform also benefited the industry. Continued corporate profit growth coupled with stable employment markets are expected to underpin industry growth over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$201bn
Annual Growth 13-18
2.6%
Forecast Growth 18-23
Profit
Employment
254,733
Businesses
54,143
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The trend toward self-funded insurance has increased demand for industry services
  • The growing number of regulations and beneficiaries has bolstered demand
  • The industry will have to counteract a stagnating number of individuals with private health insurance
  • Industry Report - Industry Products Chapter

    Industry operators are tasked with establishing, maintaining and managing benefits for the employees of an organization. These employee benefits often include health insurance and pension plans. Industry operators also earn fees from the third-party administration and management of workers' compensation for companies that opt to self-insure. Additionally, operators generate an extremely small amount of revenue from financial planning and investment management, insurance brokerage, claims adjustment and insurance consulting services.Health and welfare plansIn 2018, revenue from the third-party administration and management of health and welfare plans dwarfs all other categories. IBISWorld anticipates this segment to account for 91.4% of total industry revenue. Ind...purchase to read more.

    Additional Insights for the Benefit Administration Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Benefit Administration Services Industry are

  • Access to a highly skilled workforce
  • Ability to vary services to suit different needs
  • Access to the most efficient technology
  • IBISWorld analysts also discuss how external factors such as Number of employees and Corporate profit in the Benefit Administration Services industry impact industry performance..

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    What's in this report

    What is the Benefit Administration Services Industry?

    This industry is comprised of companies that provide third-party administration and management services of employee benefit plans, including health and welfare, pension and workers’ compensation plans.

    Industry Products
  • Administration and management of pension plan
  • Administration and management of self-funded health/welfare plans
  • Administration and management of other health/welfare plans
  • Administration and management of workers' compensation
  • Other administration offerings and products
  • Industry Activities
  • Pension plan third-party administration and management
  • Health/welfare plan third-party administration and management
  • Workers' compensation third-party administration and management
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of employees
  • Corporate profit
  • Number of people with private health insurance
  • Number of adults aged 65 and older
  • Number of work-related deaths

  • Current Performance
  • Healthcare trends boost industry demand
  • Client needs alter industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Intense competition leads to new technology and wider range of services
  • Industry landscape
  • Table: Benefit Administration Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Benefit Administration Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Educational Services

  • Key Selling Industries
  • Commercial Leasing
  • IT Consulting

  • Products & Services
  • Administration and management of self-funded health/welfare plans
  • Administration and management of other health/welfare plans
  • Administration and management of workers' compensation
  • Administration and management of pension plan
  • Other administration offerings and products
  • Chart: Benefit Administration Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Finance industry
  • State and local governments
  • Manufacturing sector
  • Wholesale and retail industries
  • Services (except government and healthcare)
  • Agriculture, mining and construction industries
  • Transportation, communications and utilities industries
  • Chart: Major Market Segmentation for the Benefit Administration Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Benefit Administration Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Benefit Administration Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Benefit Administration Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Benefit Administration Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of employees (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cobra
  • The Consolidated Omnibus Budget Reconciliation Act, which requires group health plans to provide a temporary continuation of group health coverage that otherwise might be terminated.
  • Defined Benefit Plan
  • A type of pension plan in which an employer promises a predetermined monthly benefit on retirement.
  • Workers' Compensation
  • A form of insurance that provides wage replacement and medical benefits to employees injured in the course of employment.
  • What Our Customers Say

    Why buy this report?

    The Benefit Administration Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Benefit Administration Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Benefit Administration Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Benefit Administration Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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