Definitions
DCA and TPA are the same thing.
One role, two names. A third-party administrator (TPA) is an outside specialist trusted to run claims on an insurer’s behalf. Delegated claims administrator (DCA) is simply what the Lloyd’s market now calls the same thing.
Two names, one role
Same function. Different vocabulary.
If you’ve been told you need a DCA and elsewhere heard you need a TPA, you need the same partner. The terms describe one job: handling claims, end to end, under another party’s authority and guidelines.
Third-Party Administrator
The long-standing North American term: a firm retained by a carrier, MGA, or self-insured to administer claims it doesn’t handle in-house.
Traditional term · Canadian marketDelegated Claims Administrator
The modern Lloyd’s market term for the same firm, doing the same work, adopted as London standardised its delegated-authority language.
Updated term · Lloyd’s / LondonThe acronym you use usually just reflects where the business is placed: a Canadian carrier will say TPA; a London binder will say DCA. The standard of work doesn’t change.
How Lloyd’s defines the role
A DCA is appointed to determine claims, not merely advise on them.
In Lloyd’s own terms, to “determine” a claim means holding the authority to:
- Accept or deny a claim, in whole or in part;
- Agree any amount payable; and
- Resolve any open matter finally, by agreement or, if needed, dispute resolution.
That authority to decide, not just recommend, is what separates a DCA/TPA from a loss adjuster who only supports the file.
What the administrator actually does
The job behind both acronyms.
Takes first notice
Receives and structures the claim the moment it’s reported: coverage, parties, exposure, urgency.
Determines within delegated authority
Decides coverage and agrees amounts up to agreed limits, without routing every step back to the insurer or to London.
Sets and manages reserves
Reserves on evidence and revises them honestly as the file develops.
Settles fairly and defensibly
Resolves the claim to the standard the policy promises, fully documented.
Reports back
Bordereaux to the London market for binder business; the client’s preferred cadence for Canadian carriers, the same data discipline either way.
However it’s labelled, this is the work Royal Claims does across Canada. See how we work.
The distinction that gets confused
Examiner vs. adjuster: which one we are.
When a claim involves both an adjuster and an examiner, it can feel like too many cooks. It isn’t. The roles run in sequence, and each has its place.
The field
Insurance adjuster
Establishes the facts on the ground.
- Often the first point of contact once a claim is filed
- Visits the site, assesses the damage, gathers evidence: photos, statements, reports
- Determines the extent of the insurer’s liability
- Works independently or in-house for an insurer
First · investigates & reports
The authority · our role
Claims examiner
Decides, settles, and stands behind the outcome.
- Takes over once the adjuster’s report is in
- Reviews and verifies the findings against policy terms and applicable law
- Holds the authority to settle, or to direct further investigation
- Oversees the file from an administrative and regulatory standpoint, ensuring a fair, compliant settlement
Then · examines & determines
Royal Claims operates as the examiner: the role an internal claims department plays inside a standard insurer, adapted to the Lloyd’s market and its Managing General Agents (MGAs). The adjuster establishes the facts; we decide what they mean for the claim.
How a settlement actually happens
Authority here. Expertise everywhere.
We hold the settlement authority
Insurers grant Royal Claims authority to manage and settle their claims across Canada: assessing the claim, determining coverage, and executing the settlement. In effect, we are their claims department in this market: the same function an internal claims team performs, delegated to a local specialist.
We work through a national adjuster network
We don’t typically attend the loss ourselves. As examiners, we assign each file to the right local adjuster from a curated national network, chosen by the individual best suited to the claim, not bound to any one firm. The right person on the ground, wherever the loss is.
Common questions
Asked often, answered plainly.
So is there any difference between a DCA and a TPA?
In practice, no. They name the same role. “DCA” is the term the Lloyd’s market standardised on for delegated claims handling; “TPA” is the traditional North American label. The work, the authority, and the standards are the same.
Why did Lloyd’s start saying “DCA”?
As London modernised its delegated-authority framework, it tightened the vocabulary around who handles claims under a binder. “Delegated Claims Administrator” makes the delegated nature of the authority explicit, but it describes the same third-party administration the market always relied on.
Does a DCA need Lloyd’s approval?
Yes. Since 30 September 2020, Lloyd’s has required every DCA to be approved before a managing agent can appoint it to determine claims, covering most third-party claims-handling providers. It’s a deliberate bar to clear, and it’s the standard we operate to.
Which term should I use?
Whichever matches where the business sits. A Canadian carrier or MGA will typically say TPA; a Lloyd’s coverholder or syndicate will say DCA. Royal Claims answers to both. It’s one service.
Is a DCA/TPA the same as an independent adjuster?
Not quite. An independent adjuster investigates and recommends on individual files; a DCA/TPA holds standing delegated authority to administer and settle claims within agreed limits. Royal Claims provides both, depending on the appointment.
Who licenses this work in Canada?
Adjusting is provincially regulated. Our adjusters hold licences in the provinces where we operate, alongside CIP and FCIP designations, the same standard whether the file is labelled DCA or TPA.