 |
 |
 |
|
Target Markets Program Administrators Association Carriers Carriers (Section introduction) Program administration is a burgeoning field and all signs point to the continued growth of this relatively new underwriting approach. That view is held by insurance carriers that have dedicated themselves to program business in the ever-changing property and casualty insurance industry environment. “The role of the insurance carrier in program business is to provide the capital and to manage the relationship with the underwriting arm of the program manager,” says Bill Davis, president of the New York City-based Sirius America, Inc., which does primarily commercial property and casualty programs. “Program underwriting is a collaborative approach to define the program itself, coverage levels and the target audience and then to make sure the program manager is providing the services that would be required of an underwriting group to its insureds.” David A. Jordan, senior vice president of Lexington Insurance Co. in Boston, says that insurance carriers that underwrite program business have to do three things extremely well and consistently in order to be successful. “First, carriers have to design and implement customer-specific coverages, claims handling and risk management services so that the MGA partner delivers value to the marketplace,” says Jordan. “Otherwise, brokers and insureds don’t need either the MGA or the program insurer. Second, the program insurer must have sufficient, dedicated staff and resources to manage complex business and relationships, including the tremendous audit responsibilities. Program business isn’t for beginners. “Finally,” concludes Jordan, “insurers should be intent upon making money. Unprofitability is the death knell for programs.” Jino Masone, chief marketing officer for Zurich Programs, says that Zurich offers more than “capacity” to program administrators. “We have a very diverse book of program business, and with that diversity comes a vast amount of cumulative experience among our group of program business employees. We have a dedicated team of insurance professionals reviewing program opportunities. Zurich writes program business in niches where we have the expertise on staff or where we can acquire or rent that expertise to enable us to become more comfortable with the program. “The carrier needs to be comfortable with both the market segment and the program administrator’s knowledge of that segment,” Masone continues. “Program administrators should look for a carrier that has specific, long-term experience with the types of business being insured. Programs are not served well if they are moved for the wrong reasons, such as [a] program administrator misunderstanding a program’s specific needs or a trend in a particular market segment. Stability in a program benefits the customer, the PA and the carrier,” says Masone. * |
|
|||||||||||
| ||||||||||||
