TPAs, Proportion, and the Restoration Reality
Recently at Verisk Elevate, I heard estimates suggesting somewhere between 10–20% of the total property damage market flows through managed repair programs.
That’s an important number.
But here’s another one that matters just as much.
There are roughly 15,000 full-service, dedicated restoration companies operating in the United States today.
Of those, approximately 8,000 unique contractors participate in TPA programs in some capacity.
That means more restoration contractors touch TPA work than do not.
Let that sit for a moment.
The Sandbox Is Real — But It’s Not the Whole Industry
The three major TPAs report thousands of “locations.”
But there’s heavy overlap. The same disciplined, capitalized operators often sit in multiple networks. When adjusted for duplication, the unique participation base becomes clearer.
Programs are structured. They’re standardized. They’re audited. They’re measured.
They are visible.
But they are not the entirety of restoration.
If 10–20% of market volume flows through managed repair, that means 80–90% flows elsewhere.
Perspective matters.
The Industry Is Bigger Than One Channel
Some of the most unique contractors I’ve met operate in very specific lanes:
- Multi-family housing
- Hospitality (hotels)
- Senior living communities
- K–12 schools
- Municipal contracts
- Federal government
- Military installations
- Wildfire protection
- Fire-only restoration
- Public adjuster-driven work
- Plumber referral networks at national scale
Some are franchise. Some are independent. Some are carrier-aligned. Some refuse programs entirely.
And most of us?
Residential. Local. Word of mouth. Online. Reputation. Insurance. TPA. Relationships. Relationships. More relationships.
Restoration is not uniform.
It is diverse by design.
The Auto Comparison — And Why It Matters
In collision repair, the model is different.
As of early 2026:
- ~105,000 total auto body / repair businesses (broad category)
- ~40,000 dedicated collision repair shops
- ~$35–$46B collision repair segment
- Increasing ADAS complexity and AI diagnostics
- Fewer total claims, but higher repair severity
Industry reporting shows more than 45% of initial DRP estimates in 2024 were prepared directly at shops, with adjuster-written estimates declining .
In auto, DRPs are not just a channel.
They are embedded in the system.
Now compare that to property.
According to the 2024 J.D. Power U.S. Property Claims Satisfaction Study :
- Satisfaction declined to a 7-year low.
- Average repair cycle time is 23.9 days.
- Catastrophe claims stretch to 34+ days.
- Managed repair partners and digital tools are being deployed — with mixed results.
- Claims lasting beyond three weeks materially reduce satisfaction.
Property is experimenting with structure.
Auto is structured.
That’s a big difference.
So… Are We Headed There?
That’s the real question.
Are we drifting toward:
- Greater managed repair penetration?
- More centralized contractor networks?
- Increased digital FNOL and estimation?
- Auto-style structural integration?
Or…
Is restoration simply too complex, too localized, too relationship-driven to ever resemble collision repair?
Some years, I think we are moving toward more structure.
Other years, I see how decentralized we still are and think — no chance.
The honest answer?
I don’t know.
And I’m not sure anyone does.
What I’m Doing About It
I’m not betting on one outcome.
I’m preparing my business for:
- Status quo
- Increased centralization
- Or continued fragmentation
ATI operates as a hybrid model.
Roughly 20% of our revenue comes from TPA work. Which means about 80% comes from outside programs.
I believe in diversification.
If I could generate all the revenue and margins I wanted purely locally — independent, without program fees, audits, and administrative friction — I would.
But if you want to scale… If you want to expand outside your original geography… If you want structured volume to support multiple locations…
Programs are often the most efficient way to do that.
They’re not mandatory. They’re not superior.
They are a channel.
And scaling requires channels.
As RIA President, I Represent All of It
RIA’s membership includes:
- Contractors who dislike TPAs
- Contractors who rely on them
- Contractors who use them strategically
- Contractors who avoid them entirely
- Specialists
- Generalists
- Independents
- Enterprises
My role isn’t to choose a side.
It’s to recognize the full spectrum.
This industry isn’t black or red.
It’s layered. It’s nuanced. It’s complex.
And that complexity is a strength — if we treat it that way.
Final Thought
Restoration is not auto.
Not yet.
But markets evolve.
Distribution models evolve.
Technology accelerates everything.
The goal isn’t to fear change.
The goal is to be ready for it.
And unity matters more than factional debate.
Full disclosure: This perspective is mine personally — not an official position of the RIA and not a statement on behalf of ATI.
Some of you strongly dislike that my company participates in TPA work. Some of you support it.
I’m simply stating what is true.
ATI is diversified. I believe the industry should be too.
JJ&S Environmental Services•3K followers
1moThoughtful perspective, Jeff. I agree on the importance of diversification across channels. In our experience, that diversity can make consistency in execution more challenging, as each channel tends to operate a bit differently. Alignment around scope, timelines, and quality becomes critical to delivering a good outcome.
FLEET Response•4K followers
1moVery well written thank you for putting time into this and sharing really appreciate all the work that you're doing everywhere every day it's a commitment
Restoration CrossCheck•916 followers
1moSo, Jeff - currently (and ATI is now larger and geographically more diversified than when I was there) you say that 20% of the company's revenue is from TPA work. OK - but what percentage of your volume is TPA driven? Because of TPA rules, how many FTE's are involved in that TPA volume? How do you measure ROI after factoring in all the additional administrative costs? I realize ATI is a private company and you may not be able to share this information - but you are willing to share some, so, thought I would ask.
Reliable Remediation•841 followers
1moAs independents, we must ask if "diversification" is a strategy for freedom or a more comfortable form of confinement. If 80–90% of the market flows outside of managed repair, yet more contractors "touch" TPA work than do not, we are witnessing a voluntary surrender of autonomy. "To be everywhere is to be nowhere." Scaling a business on a "managed relationship" often means scaling your administrative friction and margin extraction. True scaling comes from Zero-Dependency. If you can dominate local marketing and build B2B referral networks, your "locations" are built on reputation and "Client Primacy," not a carrier's permission. If 80% of your success already comes from outside the 'Sandbox,' are you maintaining the other 20% out of strategic necessity, or out of a lingering fear that the door to the outside world won't stay open without a carrier's key?