Special Section sponsored by

CARRIERS

Aegis Security Insurance Company

Key programs administered: bond programs, medical accident and health, bull mortality, and the National Wildlife Control Operators Association

Harrisburg, Pennsylvania-based Aegis Security Insurance Company got its start in 1977 providing personal lines insurance, primarily to the manufactured home industry. Over the years, the company expanded to include motorcycles, travel trailers, low value dwellings and more.

Twenty years ago, it branched out into various types of program business. “We do some really unique things, things people may not be familiar with,” says Eric Himes, regional marketing manager. Among these is a bull mortality program, which deals with bulls people use for breeding. The company also has a program for members of the National Wildlife Control Operators Association. “This deals with exposures of dog catchers, exterminators, any type of business working with nuisance wildlife,” he notes.

Aegis Security specializes in smaller programs. “We will consider programs with premium volumes starting at $1 million or individual premium exposure of just $150,” says Himes. “That sets us apart from a lot of our competitors. We have the computer system, the infrastructure, and the know-how to economically and profitably manage that type of business.” A lot of his competitors are only looking for high dollar value programs. For instance, another carrier Himes worked for wouldn’t entertain programs under $25 million. “That is a pretty big difference.”

Program administrators are taking note. “We just got involved with the Target Markets Program Administrators Association [TMPAA],” Himes says. “At the spring meeting, our capabilities and appetite generated a lot of interest. We saw a lot of opportunities to be a resource for MGAs with a clear focus, even if their programs aren’t particularly large.”

Himes felt right at home at the event. “I enjoyed meeting people who are passionate about products they put out in the marketplace,” he says. He also found the creativity among association members to be invigorating. “I learned about a lot of new products, and was impressed with the understanding administrators bring to a particular niche. They know the exposures, in and out, and have designed coverage superior to what a standard package offers.”

Aegis Security appeared to strike a chord with administrators, too. As a result of the spring meeting, the company is exploring opportunities for a couple of new programs Himes expects will materialize over the next several months. “We are a long-term company,” he says. “We have relationships that go back to the inception of the organization, so we are a very stable company. Meetings like this are a starting point for establishing long-term relationships.”

Participation in the meeting allowed the firm to showcase its interests, ability, and ease of doing business. “We’re open to programs that are smaller in premium and smaller in individual exposure,” he says. “Generally, we’re looking for what I’d call short-tail type business with a low loss severity.”

The carrier will consider start-up programs on a case-by-case basis, depending on existing relationships and experience. Also, it can extend underwriting, binding and claims authority to program administrators, based on their abilities and interest.

Aegis Security is open to having the program administered on the administrator’s existing platform. “They would report results on an agreed upon schedule,” Himes explains. “The advantage there is they don’t need to adapt to a new system or incorporate our system into their existing workflow. The program can be run as they wish.”

Himes expects continued growth through TMPAA involvement. “We view this as a great opportunity to get our name out through what we consider to be the leader in program business, especially the smaller type programs, which is our niche,” he concludes.