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Special Section Sponsored by Target Markets Program Administrators Association Munich Reinsurance America, Inc. Munich Re America’s Specialty Markets: Turning Risk Into Value It’s no secret that stagnant premium growth and a softening market have carriers courting managing general agents (MGAs) and program administrators again. However, now insurers and reinsurers are more selective about both the types of programs they will write and the MGAs they will do business with. Some carriers are even looking to buy program administrators to increase their control over the distribution of their products. In this environment, how can you, the program manager, maintain control of your business or, more important, take the control you need to build a more secure future? At Specialty Markets, the solution is to turn risk into value. “We do it for ourselves by focusing on MGAs and PAs [program administrators] who value professional underwriting and who are eager to share risk,” explains Specialty Markets’ president, Tony Kuczinski. “We help our clients turn risk into value by delivering products and services that help them maintain control of their business. “Programs are a niche business in which a program administrator’s underwriting expertise often results in better-than-average loss ratios,” says Kuczinski. “Why not share in those favorable results, rather than only earning a commission?” That’s the philosophy behind the products and services Specialty Markets offers MGAs and program administrators. Any program manager who’s been in this arena for the last 10 years knows what it’s like to lose a market or be forced to change carriers. It means starting over, often without the benefit of your updated loss experience or the processing system your people were trained on because your former carrier owned everything. You realize the modest commission earned can’t substitute for the profitable program and goodwill you spent so many years developing. Many agents and brokers are finding value and control in purchasing services on an unbundled basis. “Some clients prefer to work with a simpler, bundled business model,” explains Kuczinski, “while others want to manage every component of their premium dollar. We understand and even encourage that approach.” Paid claims account for most of every premium dollar, making claims handling a prime target for unbundled savings. “We’re perfectly willing to unbundle our claims services to allow clients to use approved TPAs or handle the claims themselves if they meet our qualifications.” And in-house claims experts go a step further, overseeing TPAs on the primary program business to assure the quality of claims handling. Clients also have access to Specialty Markets’ policy rating and issuance system, which supports standard ISO lines, workers compensation and some other classes with customization. “If an agency has its own policy management systems, we can work with it to build electronic interfaces between its systems and ours,” explains Kuczinski. Specialty Markets’ combination of insurance and reinsurance capabilities means clients receive a custom program. And as a division of Munich Reinsurance America, Inc., a subsidiary of Munich Reinsurance Company, which is one of the largest reinsurers in the world, Specialty Markets has access to experts in virtually all fields of underwriting, actuarial, claims and systems, as well as many supporting services. “We take the time to get to know your business and offer the products and services you can benefit from,” says Kuczinski.“Our clients are free to use any combination of our services—or bring their own. Our goal is simple: to help you grow your business profitably.” Specialty Markets offers “A” rated paper for commercial lines through American Alternative Insurance Corporation, an admitted insurer in all 50 states and the District of Columbia, and offers surplus lines through The Princeton Excess and Surplus Lines Insurance Company’s licensed surplus lines producers. For more information about Specialty Markets’ products and services for MGAs and program administrators, visit http://www.munichreamerica.com/specialtymarkets. → |
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