The TPA Is Taking 10 Points and Calling Itself a Platform
I’m tired of watching the same grift wear a new outfit.
A carrier today has the ability to verify a restoration contractor in seconds, match them to a job based on real-time capacity, location, and performance data, and assign the work directly. The technology exists. The data exists. Yet somehow a TPA still shows up, skims 8 to 12 points off the top, and has the nerve to call itself a “platform.”
That’s not a platform. That’s a toll booth with better marketing.
The Information Asymmetry That Built TPAs Is Dead
TPAs were born in a world where carriers had no efficient way to find, vet, or manage hundreds or thousands of local restoration contractors. Insurance companies didn’t want to deal with the chaos of water, fire, and mold claims at scale. So TPAs stepped in, built networks, and charged handsomely for solving a real problem.
That problem doesn’t exist anymore.
The Universal Commerce Protocol was built to eliminate the exact friction TPAs used to justify their existence. When a carrier’s AI can see verified contractor capacity, licensing, insurance status, performance scores, and pricing transparency in real time, the middleman’s value proposition collapses. The information that used to be hoarded is now flowing.
Yet the TPA still takes their cut. They still insert themselves into the workflow. They still send the contractor a lower check than the carrier approved. And they still have the audacity to act like they’re doing everyone a favor.
What Exactly Are They Providing for 10 Points?
Let’s be brutally honest about what a TPA actually delivers in 2025:
They forward an assignment. They send some emails. They run some basic dispatching software that looks like it was designed in 2008. Maybe they offer a crappy app that contractors hate. In return they clip 8-12 points off every single job.
That’s not a service. That’s rent-seeking.
The contractor still does the actual work. The carrier still pays the claim. The homeowner still waits on the same timeline. The only thing the TPA truly optimized is their own margin.
I run a restoration contractor network. I see the numbers. I see what carriers are approving and what contractors are actually receiving. The gap is disgusting. And every time I bring it up, the TPA talks about “program value” and “managed service.” Translation: we like our margins and we’ll use every buzzword possible to protect them.
The technology that created UCP destroys the very foundation the TPA model was built on. When every participant in the ecosystem can see the same clean data, when assignments can be made instantly to the best available contractor, when performance is transparent and payments are direct, the 10-point tax becomes indefensible.
Time to Stop Pretending
Some carriers are waking up. A few have started routing simple claims directly to pre-vetted contractors through protocols that don’t require a TPA in the middle. The results are faster cycle times, happier contractors, and better outcomes for policyholders.
The TPAs see this and panic. So they rebrand. They call themselves platforms. They talk about AI while still running 20-year-old workflows. They try to insert themselves as the “orchestrator” when the market no longer needs an orchestrator.
Here’s the truth: if your entire business model depends on maintaining information asymmetry that no longer exists, your business model is obsolete.
The restoration industry doesn’t need another company taking points for forwarding an email. We need clean, direct, transparent commerce between carriers and qualified contractors. That’s what UCP enables. That’s what the market actually wants.
The middleman had a good run. Technology caught up.
Will’s Take: The TPA model is dying in slow motion while pretending to evolve. Carriers have the tools to assign work directly to verified contractors without giving away 10 points to someone who forwards an assignment. The information asymmetry is gone. The justification is gone. Only the margin remains. It’s time to stop paying for a problem that technology already solved.
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