Target Markets unveils Best Practice initiative—New designation will certify professional practices of program administrators 09/06


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Target Markets Program Administrators Association

Target Markets unveils Best Practice initiative

New designation will certify professional practices of program administrators

Aristotle may have said it best: “We are what we repeatedly do. Excellence, then, is not an act, but a habit.” One insurance industry group is looking to reward and celebrate the good habits of its members. The Target Markets Program Administrators Association (TMPAA) is dedicated to serving the interests of the program specialist. One core element of the Association’s mission is to promote excellence for this most elite segment of insurance intermediaries—managing general agencies/program administrators. It is for this reason that the Association’s recently developed Best Practice Evaluation is such an important initiative for the emerging industry group.

“The TMPAA has grown to a 250-member organization in just over five years,” explains Glenn Clark, the group’s past president. “From the Association’s inception, it was our intention to promote the excellence we knew existed in the program marketplace, and provide the tools for all our administrators to achieve this high level of functioning in their program operations. The development and implementation of this Best Practice designation allows us to continue to move toward that goal.”

Art Seifert, outgoing TMPAA president states, “Target Markets has developed a great process to evaluate the program business operations of Association members who apply for the designation. We feel that participation in a Best Practice evaluation will encourage applicants to review their current level of functioning, look for greater efficiencies in the way they currently do business, and ultimately be recognized by other program business professionals. The designation will not only benefit members through critical reviews and improvements in agency function, but through enhanced market image and product promotion.”

“Recognizing the expertise of program specialists and acknowledging the administrators who run ‘Best in Class’ program operations is an important function for this Association” adds David Jordan, Senior Vice President of AIG Programs. “The Best Practice designation raises the bar for the program business segment of the industry. Target Markets has become a considerable force in this business segment, which is why we have been strong advocates for and a member of the group since its inception in 2001.” The Best Practice evaluation criterion was created by the TMPAA Board of Directors, which included carrier partner Darwin Professional Underwriters and vendor partner Wilson Elser.

Rick Barr, Darwin Pro vice president, states, “Darwin Pro’s expertise in underwriting MGA E&O and providing risk management services to our insureds, provided us with the ability to assist the Association in developing the Best Practice evaluation criteria. While the evaluation is not as extensive as a carrier’s due diligence process might be, achieving this designation will certainly give the program carrier community as well as agent/producers a good indication that the administrator runs a best in class operation.”

Gregory S. Katz, deputy managing partner of the New York office for the law firm Wilson Elser, indicates that, “Wilson Elser is excited about the opportunity to assist Target Markets with this initiative. Our firm is uniquely qualified to conduct the required on-site evaluation, given our expertise in this area of and years of experience representing MGAs and insurance carriers. We are very cognizant of the confidentiality issues involved in this process, and have carefully constructed a process that addresses this issue.”

In April 2006, Association member Professional Underwriters in Exton, Pennsylvania, became the first agency to undergo the review process and receive the TMPAA Best Practice Designation. “Target Markets has been an important resource for our business, and the best practice review process has allowed us to both examine our operation internally, and demonstrate our proficiency in conducting business”, says John Solari, president of Professional Underwriters. “I would strongly recommend the process to other program specialists in the Association.”

“The Best Practice program is a dynamic process designed to help all participants secure the TMPAA designation,” states TMPAA Executive Director Ray Scotto. “Following the completion of the on-site evaluation, the evaluating entity will complete a report regarding the findings of the review process. If a Best Practice designation is not being recommended, the evaluation entity will provide specific reasons for the decision, as well as solutions to remedy the function or process that does not currently meet the standard. The Association will work with members, to ensure they are directed to the appropriate services to provide solutions to the issues preventing the Designation. We are very excited about promoting the members of our Association who are awarded this designation, and setting the standard in the industry for program specialists.”

The TMPAA plans to honor several of its member agencies that have been awarded the Best Practice designation at its sixth annual Program Administrators Summit next month in Tempe, Arizona. *