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Target Markets Program Administrators Association New president plans to continue growth Thompson commends association's accomplishments “The phenomenal growth of the Target Markets Program Administrators Association (TMPAA) in the five years since its inception is a real success story. But, we’re still in the beginning stages. There are challenges ahead and we expect to meet those challenges, head on.” So says Greg Thompson, head of the Atlanta-based Thomco, a managing general agency that currently offers 14 programs ranging from day care centers to pest control, from home health programs to tanning salons. “We underwrite business that scares away most insurance markets,” Thompson says of his book of business. For example, Thomco moved into the child day care center insurance arena at a time when the rest of the insurance industry was shunning the business. This year, at the association’s annual meeting in October, Thompson will be installed as president of TMPAA, succeeding Art Seifert of the Dallas, Texas-based U.S. Risk Underwriters. The first meeting of the TMPAA was October 1, 2001, right after September 11,” remembers Thompson. “Understandably, attendance was small—only eight insurance companies. However, last year, with only five years under our belt, there were 30 insurance companies in attendance and more than 200 program administrators. Carriers and vendors are signing onto TMPAA with great frequency and we continue to grow program administrator members.” Nevertheless, Thompson believes that there is still room for further growth. “There are still many program administrators out there who haven’t really heard of our association or the values we offer. In the next two years, we will be focusing hard on attracting more program administrators into our fold.” Thompson says that efforts to date to attract new members have not been lackluster. “We’ve used direct mail, advertising and press releases to the media. We have our Web sites, a newsletter and have sent letters to prospective members. Those efforts have certainly been successful. What we need now is the old elbow grease. We need to make contact with the program administration community. We have to make phone calls and make personal contacts with program administrators who are not aware of the opportunities that exist within TMPAA.” Another focus for Thompson during his next two years in office will be to build upon the association’s certification program. The certification program is one in which TMPAA members can qualify, through an independent law firm that examines a program administrator’s operations, to achieve certification, meaning that the program administrator meets best practices standards. “Certified program administrators give comfort to carriers, letting them know that our members have met stringent guidelines to be certified,” says Thompson. Continues Thompson: “We’re also giving a good deal of thought about what our criteria should be regarding carrier and vendor associate members. We’ve seen instances where a carrier that specializes in programs will come on board, but not put the word out to their program administrator customers to come to the meetings, for fear they’ll lose the business. We’re asking new carrier members for a commitment that their program administrators will attend to meetings and become a member of TMPAA.” Thompson says that TMPAA had been considering an initiative to create a Target Markets Insurance Company, where members could participate in the risk sharing in a captive arrangement, but the market softened and that initiative will have to wait a while. In fact, TMPAA really started up in a hard market and Thompson agrees that, in a hard market, the value of such an association is self-evident. “Program administrators having a difficult time in a hard market getting their programs placed have access to carriers through the association.” However, in the current soft market, Thompson maintains that program administration members also have a great advantage. “In a soft market, insurance carriers are much more flexible about considering new programs. It is an opportunity for program administrators to get a new program off the ground. The program administrator can begin by being conservative and, then, when the next hard market hits, rise to the occasion and become a major player in that market. Just remember, when you have more than 30 carriers attending the meetings, basically you have access to all the carriers that operate in the program business. “Another advantage,” continues Thompson, “is that program administrators have an opportunity at the meetings to rub shoulders with peers and compare notes to find out the best practices and eliminate the mistakes you don’t want to repeat. Also, some program administrators are thinking of acquiring other program administrators and where better to meet with potential acquisitions. The networking opportunities are endless,” says Thompson. * |
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