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Drivers of visible growth
The United States program space has grown significantly with data showing a 352 percent jump between 2010 and 2022.
The latest statistics from the Target Markets Program Administrators Association (TMPAA) showed that the market exceeded 80 billion dollars by 2023, with future estimates of more than 100 billion dollars.
This rising trend is a product of program administrators (PAs) drawing landscape and professional lines. Carriers also rely on PAs to manage niche risks resulting in lower loss rates. The TMPAA study also shows that 83 percent of PAs planning to introduce new programs in the next two years as well 96 percent of carriers plan to add new programs over the next three years.
Carriers have valued these specialists more than generalists.
Gene Abbey, director of insurance services and education at TMPAA, says, “It lowers costs for the carrier, provides specialized underwriting expertise, and results in better loss ratios. Additionally, it allows the carrier to quickly enter a new line or business segment without a base.” which is already handled by the system administrator.”
And he adds, “For the program manager, it enables them to develop their special niche products by customizing coverage and pricing to effectively operate a profitable program. Oftentimes, within just a few years, profitable programs are sold or acquired multiple times in EBITA.”
Insurance Business America surveyed consumers, carriers, and PAs to find top performers over the past 12 months. After this extensive process, 14 program managers and 10 carriers were awarded a 5-star rating for outstanding performance.
What do the best program managers do?
Although there is a lot of pressure for PAs to succeed, only the best players are awarded with the partnership with the carriers.
One of them is MiniCo Insurance Agency, which, in the last ten years, has gone from a few programs to 19.
“We plan to launch two to three more programs before the end of 2024,” said Jim Henry, president of MiniCo's national programs division.
“The key to our programs is our focus on business classes”
Jim HenryMiniCo Insurance Agency
The company's major programs include Non-Profit and Community Services, New York Contractors Credit, Art Contractors, and Car Rentals and Non-Owner Food/Cannabis Couriers.
“Our agents and buyers come to us because of our professionalism, expertise and experience in the program space across our underwriting and application teams,” commented Henry. “We have dedicated teams for each program with specialized underwriters who fully understand the risks, exposures, market trends, and unique industries we serve.”
This strong service mandate is part of our 5-Star winning partner REInsurePro.
“We always try to put ourselves in their shoes and make decisions based on what our agency partners write about our program,” said vice president of business operations, Casey Carter. “We are the manager of the program and if we don't have independent people writing for our program, we don't make any money.”
“We truly believe we are the leading program managers in this space”
Casey CarterREInsurePro
The catalyst for the development of the MiniCo program is the long-standing relationship that CEO Shawn Woedl has built with top residential/commercial insurance companies. Woedl's outstanding work allows primary policy carrier contracts to be written with REInsurePro National Real Estate Insurance Group.
Carter adds, “We've taken a significant step to train our agents in the space of multiple investment sites, DP3, etc., and make sure they have all the necessary tools to write about our program, and understand and represent our program accurately. to their insured.”
REInsurePro, like other leading PAs, has little contact with the insured.
“It is on our shoulders that he talks about everything about our program. “If we don't treat our agent like a customer, our team will fail,” explained Carter.
Ryan Specialty National Programs, also a 5-Star winner, focuses on identifying niche industries where they can provide a product that addresses unique integration problems.
“Our pest control work is directly related to dealing with wood destroying insects such as termites. In the firefighting space, the forms address the hazards associated with halon gas in detail,” said co-president Chris Kelleher. “These are the risks our writers face every day but can only sift through in the sales agent's office a few times a year. Retailers can take advantage of the expertise of underwriters to help find solutions for their customers.”
“As experts in our niche industries, we are confident in our ability to deliver mutually beneficial results. Partnering with carriers who understand this model is critical to our shared success”
Chris KelleherRyan Specialty National Programs
The company also differentiates itself with a dedicated focus on niche industries supported by a strong infrastructure that includes actuarial, claims, and modeling services. Its 40+ underwriters, many with more than 20 years of industry expertise, bring participants a deep understanding of common risks.
Co-president Bill Evans adds, “Our underwriters use their expertise to work with carriers to create coverage forms that are appropriate for the industry classes we write. We focus on risk selection and pricing, while providing our clients with an exceptional customer service experience.” Being able to differentiate yourself is something that Professional Program Insurance Brokerage (PPIB) works hard to deliver. Its programs are developed in close cooperation with carriers.
“These programs become successful only when both partners are fully engaged. As a program manager, individuality is critical to building strong, profitable long-term programs,” says business development manager Colleen Ryan.
This company has a complete understanding from the grassroots level, of the project in the market.
“The clients who benefit the most from working with PPIB are those who require professional service coupled with personal service. We work directly with insureds, retail agents, and major retailers, delivering competitive coverage with a smile,” added Ryan. “Sales are often a key feature that our partners rely on us to deliver. In our partnership, we specialize in handling that important aspect of marketing.”
“We manage the relationship with our managers by being fully committed partners. We stay connected through regular and in-person meetings, addressing issues as they arise”
Colleen RyanProfessional Program Insurance Brokerage
Risk Placement Services (RPS) is another 5-Star winner that prioritizes strong relationships. Its sustainability model helps clients focus on their business operations. Russell Duffey, president of programs, shares, “In an industry where relationships and expertise are critical, our commitment to recruiting, retaining and developing top talent with a culture of innovation and collaboration has led to significant growth in both diversity and team experience. ours in recent years. “
RPS's outstanding programs include the Public Entity All-Lines Aggregate package that provides a solution for municipalities, schools, states, and other public entities, and their Golf and Country Clubs Package/Specialty Lines that focuses on private golf clubs and country clubs, private and daily money courses, private tennis clubs, and golf management companies.
“We solve our clients' needs and help them succeed”
Russell DuffeyRisk Assessment Services
Duffey adds, “Our specialty programs are backed by unparalleled industry expertise, RPS Signature Programs managers have 25 to 30 years of underwriting experience in specific classes and lines of business. This deep source of knowledge is a unique advantage that is difficult to duplicate, ensuring that our customers receive the most informed and effective solutions.”
What are the best carriers doing it?
Arch Insurance is renowned for industry best practices, including ensuring that each program manager has at least 15 years of experience. This company also knows about the importance of specialization in PAs.
“We know the importance of choice and we are committed to not creating a competitive program that conflicts with the program manager,” explained Paul Sullivan, senior vice president, P&C Programs. “If there are nuances based on class or location details, we make sure to discuss those issues early so they're clear.”
“We offer the financial strength but also the breadth of skills to meet the number of program managers and certified needs”
Paul SullivanArch insurance
The depth of talent in Arch's ranks makes it stand out as a carrier because it can offer extensive insurance expertise in industry issues, solutions, loss control, and claims.
Sullivan says, “We want to partner with PAs, each bringing expertise, experience, and value to find the best solutions for profitability and growth. This approach leads to profitable results and that is why more than half of our business has PAs who have been our partners for more than 10 years. “
The burning question though is, what are the leading carriers looking for in their PAs?
Sullivan shares that insight and highlights that the best PAs offer more additional services to their clients than just an insurance quote.
“Strong in-house loss protection services are a great example of what a program director can offer to provide value to their agents and insurers. Educational resources on loss prevention, industry issues, and business management advice are some examples of how a program director can differentiate what he offers,” he explained.
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