CUSTOMER PORTAL
Most industries keep third parties at arm’s length from the business. In insurance, they’re fully ingrained in how policies get sold, underwritten, and paid. Third-party administrators (TPAs) process claims. Brokers and agents originate the business. Managing general agents (MGAs) underwrite it on the carrier’s behalf, and reinsurers absorb the risk once it’s written.
Insurers are adding third-party dependencies faster than most programs can absorb them, and those dependencies are becoming a key point of failure. According to EY’s 2026 Global Insurance CRO Survey, third-party risk management is CROs’ third highest priority for operational resilience enhancements over the next five years, but vendor risk won’t wait for insurers to catch up.
Regulators have responded accordingly. The National Association of Insurance Commissioners (NAIC) Insurance Data Security Model Law, now adopted in some form by more than 25 states, requires insurers to oversee the third-party service providers that touch policyholder data and to notify the state insurance commissioner within 72 hours of a cybersecurity event.
The law assumes insurers already track what every TPA, broker, and MGA is doing with their data day to day. Most programs were built to check on that once a year.
A gap in one TPA’s controls or one broker’s referral practice doesn’t stay contained. It surfaces at the next audit, the next renewal, or the next claim a plaintiff’s attorney decides to challenge. Below are the questions every insurance risk and compliance leader needs to answer to find those blind spots before an audit, renewal, or claim forces the answer, followed by how Aravo’s Intelligence First™ Platform addresses each one.
Most TPA relationships run on a contract and an annual attestation, not ongoing visibility into how the administrator actually handles the data it’s been given. In 2024, one TPA discovered attackers had been inside its network for weeks. The company contained the intrusion, but attackers got back in anyway. By the time the breach was fully disclosed, more than 800,000 individuals had been notified, a number that later climbed past 1.6 million, and the exposure ran across every carrier relying on the TPA to administer their policies. None of those carriers knew it was happening, even though the contract was still technically in force.
Regulators and courts don’t distinguish between an insurer’s own failure and its administrator’s. A national TPA, a subsidiary that handles claims administration for insurers nationwide, disclosed a breach in 2023 that affected 2.4 million policyholders. The resulting class action settlement closed two years later for more than $13.75 million, with no admission of wrongdoing from anyone involved. The breach happened inside this TPA’s environment, but they didn’t pay for it alone. The insurers who relied on it were named co-defendants in the same settlement.
Producer and broker relationships are built on referrals, and referrals are exactly where anti-bribery exposure tends to concentrate. In 2025, a leading insurance company voluntarily disclosed that employees at its Indian subsidiary had paid bribes to foreign officials in exchange for customer referrals. The DOJ didn’t prosecute, but the insurer still lost $4.7M in profits tied to the scheme. The bribes didn’t come from a rogue employee acting alone. They ran through the same referral relationships every distribution network depends on to generate business.
Running more producers and administrators through the same yearly questionnaire produces more paperwork, not better visibility into ownership changes, control gaps, or referral arrangements that shift between review cycles. When a regulator asks why a TPA kept its authority to handle policyholder data after its risk profile changed, or why a broker’s referral fees never got a second look, the insurer needs a documented answer, not a reconstruction.
Insurers need a third-party risk program built for a business where TPAs, MGAs, brokers, and reinsurers aren’t vendors at the edge of the operation but partners inside it. Aravo’s Intelligence First™ Platform, with Aravo AI embedded natively throughout, is designed to meet that requirement across the full third-party lifecycle.
A single governed record for every TPA, broker, and MGA relationship. Aravo centralizes third-party data across claims administrators, underwriting partners, reinsurers, and distribution partners into one governed inventory, closing the gaps that let a subcontracted TPA or an unreviewed referral arrangement go unnoticed until a regulator or plaintiff’s attorney finds it first.
Aravo AI agents monitor claims, distribution, and reinsurance third-party risk. Aravo AI agents analyze third-party documentation, beneficial ownership structures, and government official associations using external risk intelligence subscriptions, giving compliance teams structured visibility into the referral and ownership risk a standard due diligence questionnaire tends to miss.
Continuous TPA and broker monitoring flags breach and bribery liability. Instead of relying on annual reviews, Aravo tracks TPA and broker risk profiles continuously. When a vendor’s ownership, security posture, or referral activity changes, Aravo AI triggers workflows that route the finding to the right team with recommended remediation steps.
AI-prefilled TPA and producer assessments with audit-ready data lineage. Aravo’s Workflow Agents automate onboarding reviews, control validation, contract analysis, and evidence collection across TPA and producer relationships. Aravo for ABAC applies a proprietary questionnaire built on FCPA, UK Bribery Act, OECD, and ISO 37001 guidance to screen for beneficial ownership and government official associations before a referral relationship becomes a liability. Every classification, decision, and remediation action is logged with full data lineage, so the 72-hour notification clock starts with a documented record already in hand, not a scramble to reconstruct one.
The insurers managing third party risk well haven’t slowed their distribution networks or TPA relationships to get there. They’ve stopped treating third-party oversight as an annual formality and started treating it as continuous best practice, because the vendor network isn’t separate from the business of underwriting and paying claims. It is that business.
Aravo built its insurance program for carriers ready to make that shift.
Risk Oversight Across Your Insurance Ecosystem
From TPAs and brokers to MGAs and reinsurers, Aravo helps insurers centralize risk intelligence, automate due diligence, and continuously monitor critical relationships. Contact our team to see how the Intelligence First™ Platform can strengthen compliance, resilience, and risk visibility across your extended enterprise.
Share with Your Friends: