 |
 |
 |
Special Section Sponsored by Target Markets Program Administrators Association Vendors When Target Markets Program Administrators Association opened up shop in the early part of this decade, vendors of various services to agents and carriers immediately saw the association as a market ripe with opportunities. Vendors that offered loss control consulting, merger and acquisition consulting, valuation, expert witness assistance and outsourcing services recognized that program administration was on the verge of a boom. Managing general agencies and risk retention groups were trying to grow in the program administration arena, and many of them needed vendors to perform functions that they could not handle themselves. Target Markets provided a perfect venue for agencies and carriers to get together to discuss possible programs, and vendors were there to market whatever services were needed. Now, some years later, the program administration arena has grown and become more sophisticated. How have vendors fared in this burgeoning business arena? “There is no question that vendors have grown, in large measure because program administrators have become savvier about program business in general,” says Gene Abbey, director of marketing and sales for FARA Risk Control Services. “Today, the vendor’s role has changed. Rather than providing generic services, vendors now are moving towards customizing their services to meet the needs of specific programs. We are now tailoring our loss control services to fit the customer’s underwriting guidelines. As program administrators become savvier about the programs they have in place, they will be sharper as to what further programs they are willing to take on.” FARA specializes in risk control services and also offers third-party administration, claims management, adjusting, fraud investigation and catastrophe management, among other services. Continues Abbey: “Let’s consider, for example, roofers. Most underwriters consider roofers to be a tough line to put into a program. But a more sophisticated program administrator might recognize that not all roofers are volatile exposures and then weed out the good risks, leaving their competitors with the problem of adverse selection. This could be true of other industries as well. The vendor that recognizes the specific underwriting guidelines of the program administrator will be able to best provide the services.” This, Abbey says, is why Target Markets is so important to vendors. “The association brings together a broad spectrum of program administration participants; and, through the networking opportunities offered, vendors can find out what carriers want and what agents want and customize their services with offerings to fit those needs.” Pat Walsh, vice president of INSTEC, a company that offers rating and policy administration software systems to carriers, MGAs, brokers and self-insured groups, agrees with Abbey about Target Markets’ networking opportunities. “The thing for program administrators to do is to use those opportunities wisely. When choosing a carrier or a vendor, look at the company’s track record. Find out if their current clients are happy. Above all, make sure that the people you’ll be working with are competent.” Kim Riter, vice president of marketing and communica-tions for York Insurance Services Group, Inc., a third-party administrator, says that vendors can bring a great deal to carriers and program administrators. “Regardless of market conditions, outsourcing can be critical to mitigating loss, whether it’s claims handling, technology or any one of a number of other outsourced services,” says Riter. “Beyond cost savings, the benefits gained from the use of skilled resources and state-of-the-art technology can be significant. It can give the customer the ability to improve his or her own internal best practices platform, improve service, provide more flexibility and responsiveness, and increase market strength.” → |
 |
|
|||||
|
|||||||