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Special Section Sponsored by Target Markets Program Administrators Association American Safety Insurance With its focus on smaller programs, American Safety Insurance (ASI) has been able to find a market with a substantial need and few carriers to fulfill that need. Since its inception in 1988, the Specialty Programs Unit of ASI has focused on small programs with $5 million to $20 million in annual direct written premium. While programs of this size may be below the radar of larger carriers, ASI has generated more than $500 million in gross written premium from small programs and has no plans to change that philosophy in the future. “The mission of American Safety Insurance is to ‘provide innovative insurance solutions for underserved risks’ which is carried through to the programs unit,” said Brad Isaacson, CPCU, director of program business at ASI. Isaacson has over 20 years of experience in the program business arena. He feels that ASI’s approach to focusing on small programs gives ASI the opportunity to work with program managers that clearly demonstrate superior knowledge of their product line and marketplace, which has resulted in consistent underwriting profits. In Isaacson’s opinion, ASI’s smaller size in relation to other carriers catering to the program business market is an asset, especially since ASI has many of the same capabilities. “ASI is a smaller company and can provide both customized solutions that address each program’s needs and individualized attention to our program manager partners. In addition, we have the strength of an A (Excellent) rating from A.M. Best and many of the same abilities to creatively structure programs like larger carriers,” said Isaacson. “ASI has admitted and nonadmitted capabilities, segregated cell account capabilities, and access to American Safety Reinsurance, Ltd., for reinsurance.” ASI’s target opportunity is a program that caters to a unique, homogenous class of business in need of professional, general liability, incidental property, and/or excess coverages. ASI typically stays away from programs needing workers compensation, medical malpractice, ocean marine, auto or personal lines coverages, as well as catastrophe-exposed property. However, Isaacson is quick to point out that many of these classes of business could benefit from ASI’s fully- or partially-funded products if an insurance program is not a good fit for the risk. All of ASI’s program partners participate in a portion of the risk on their program. In Isaacson’s experience, having a piece of the risk helps a carrier assess the commitment of its program managers. Isaacson firmly believes that a program manager’s level of expertise is also an important factor when examining a program. Many of ASI’s program partners are managing general agents who are well known in the field of their program, bringing not only a clear understanding of their product, but also a well established distribution network. Examples of current programs include a general liability program for senior living facilities, general and pollution liability for pest control operators, a non-owned excess auto program for pizza delivery and courier services, dealers open lot, professional liability for real estate agents, bail bonds, general and professional liability for parent-teacher associations and organizations (PTAs and PTOs), small value builder’s risk, and general liability coverages for a variety of specialized groups of contractors. Isaacson feels that Target Markets has been a great opportunity for ASI to network with others involved in the program business industry. “The Target Markets annual and mid-year meetings provide us with a forum to learn more about topics relevant to program business, as well as touch base with existing and prospective MGAs,” said Isaacson. “These events are well attended and well organized, so we can count on all of our major players to be in attendance.” → |
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