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Target Markets Program Administrators Association Reflections by outgoing president Higher membership and improved image mark Seifert's tenure For Art Seifert, president of the Dallas, Texas-based U.S. Risk Underwriters, not only is corporate growth something to be achieved, it is something to be built upon. “The insurance industry is changing rapidly and the only way to stay ahead of the curve is to be innovative,” he says. That philosophy has stood Seifert in good stead in his own business interests and, as the first elected president of the Target Markets Program Administration Association (TMPAA), he has, over the past two years, applied it to the Association’s goals as well. When Seifert first took over as TMPAA president, he was president of Lighthouse Underwriters, a program administrator that specialized in the staffing industry, entertainment, nonprofits, professional liability and assisted living facilities. Having built Lighthouse to that level, Seifert asked himself, “What do we do next?” Seifert was looking actively at merger opportunities with other program managers that were looking to add scale and diversification. As a result, earlier this year Lighthouse became part of U.S. Risk Underwriters, part of the U.S. Risk Group, and has added to its portfolio of programs medical facilities, long term care hospice and day care, and has significantly increased its share of the professional liability market. “We have programs for energy and gas, a large book of tribal business; and we underwrite a criminal justice service program (private jails), as well as financial institutions. We are now a $270 million business, with a much larger platform from which to operate.” Seifert became involved in Target Markets about six years ago as the result of some ads he saw in the trade press, ads taken out by Glenn Clark, president and owner of Rockwood Programs, an agency that specializes in EPLI coverage. Clark is also the force behind the creation of the Target Markets Association. “We weren’t members of NAPSLO or AAMGA or other major associations,” says Seifert. “But when I saw the ad proposing an association just for program administrators, I decided to investigate. At the first meeting, the goal was to explain what the proposed association would be about and to measure interest in the plan by way of attendance. Glenn put together a team to take it forward, and I was on the board of directors for about three years before I was elected president. “One of the most import things that Glenn did was to bring on Ray Scotto as executive director. Ray has done an excellent job in bringing the Association forward. Everybody else works on a voluntary basis, so Ray has to coordinate activities and motivate participation. We try to keep it simple as to what Target Markets is all about. It’s all about education and accessibility. When program administration members come to a Target Markets meeting, they can arrange, in advance, to set up meetings with eight or 10 carriers at one place. Moreover, the breakout sessions are extremely valuable for networking.” Seifert says that, in his past two years as TMPAA president, he has concentrated on two things for the Association—building its membership base and improving the image of program administrators. “We created and launched a new certification program for Target Market members,” he says. “Those who complete the program can demonstrate to program carriers that they operate professionally and in a ‘best practices’ manner.” Here’s how the certification program works, according to Seifert. A member who wants to apply for the certification program contacts the Association and receives what Seifert describes as “a very significant survey” to complete. The survey examines an agency’s accounting practices, processing practices, loss ratios with companies and internal auditing methods, among other things. The results of the survey are given to an independent law firm with whom the Association contracts. Representatives of that law firm visit the agency and verify the information on site. “It’s all done on a weighted scale,” says Seifert. “When a member reaches a particular place on the scale, that member is certified. Remember, we’re certifying the organization, not individuals. It’s sort of like the Good Housekeeping Seal of Approval.” Seifert says that Target Markets designed the certification program based on what program carriers want. “We went to our carrier associate members and asked them what they would look for in certified program managers. We took their answers and designed the program. Now that the program is up and running, we don’t have to sell the idea to carriers because they were the ones who laid the ground rules.” So, Seifert has realized the two goals he set when he took on the Association presidency. Membership in the Association has grown by better than 30%, and the certification program has brought a certain legitimacy to the Association. What next? “I think we need to do a better job of creating a more significant voice for the Association in the marketplace,” Seifert says. “When there is a significant event, such as Hurricane Katrina, and the papers begin calling industry associations for comment, Target Markets should be right in the middle of that. We should be building credibility as a voice for this segment of the insurance industry in the marketplace.” Finally, Seifert says that Target Markets should continue to work to build strong relations between program managers and program carriers. “If the program manager offers the expertise, and the program carrier offers the exclusivity and a strong partnership develops as a result, then you have something of sustainable value.” * |
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