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Meadowbrook: Expanded capabilities assist agents in recognizing program potential

In July 2008, Meadowbrook Insurance Group, Inc. (Meadowbrook), merged with specialty excess & surplus lines company Century Insurance Group (Century). Meadowbrook forecasted that its business would greatly benefit from the synergies between the two organizations.

Over a year later, those expectations are realized. Merging with Century provided Meadowbrook with more business opportunities, enabling it to expand its product offerings. The merger contributed to impressive earnings in 2009, and resulted in a stronger, more diversified company that offers full-service excess & surplus lines capabilities.

Robert S. Cubbin, Meadowbrook’s chief executive officer, states, “Looking back one year later, our goals are being achieved. Business growth has been robust in the face of the global challenges to the insurance industry. We have experienced a great year so far and are positioned quite well to show very substantial profitable growth in 2009 and 2010. We will continue to offer the same great service that sets us apart in the industry.”

Programmed for success

Meadowbrook, via its upgraded service model, continues to expand program capabilities and stay true to its reputation as “The Program People.SM”

Archie S. McIntyre, Meadowbrook senior vice president of business development, notes, “Program agents experience immense challenges in today’s market. Among the many aspects of managing a program, one very important goal is partnering with a carrier that can assist in program growth in future years. Program agents need a carrier that emphasizes expense efficiency among all parties—agent, production sources, carrier—in order to effectively compete in current markets. They also require a carrier that’s flexible and offers automated solutions or can utilize the agent’s existing automation interface.”

Program market needs are constantly evolving. Identifying carriers that cover both admitted and nonadmitted paper is extremely important. Fortunately, Meadowbrook does just that. Its excess & surplus lines capabilities enable the company to supply additional products to accommodate business that may fall outside admitted programs’ eligibility guidelines. Meadowbrook understands agents’ individual needs. Meadowbrook helps agents identify niches that can be developed into programs, and assists in creating and growing the program side-by-side with the agent.

Do you have a program and not realize it?

A critical strategy for agents interested in growth is examining existing clients. Is there a niche business practice that could be a program’s foundation? If “yes,” then identifying a dedicated carrier is the next step in developing a successful program.

“That’s the natural flow of an agent’s career,” says McIntyre. “Eventually, an agent becomes strong in one area, and better understands how the insurance industry evaluates, underwrites and processes claims in that specialized coverage area. Those agents possess insights and connections that others usually don’t.”

Many agents develop specialty areas of concentration by successfully writing homogeneous types of business, often through specialized knowledge of industries or via association endorsements.

“Some agents have a potential program but do not realize it,” adds McIntyre. “Overall, strong candidates for elevating a business book to program status will have: a proven loss history—generally for at least five years; agency expertise in the class of business; an established distribution system; stability in past carrier relationships; competitive market intelligence; and risk-sharing potential.”

Upgrading existing business into a program with an exclusive underwriter relationship has many advantages. For example, developing customized, program-specific policies, as opposed to dealing with off-the-shelf policies from several standard markets.

Understanding needs of clients, and special local or state business climates, results in strong programs. Good programs are also born of agents’ knowledge of industry trends in coverage availability, pricing, and claims experience. Agents must balance their mission of “client advocacy” with maintaining their program’s underwriting standards.

This commitment to programs helped establish the foundation of Meadowbrook’s stable success for over 50 years. As the company continues to expand its service offerings and capabilities, this dedication to managing and nurturing program business with agents will continue.

Cubbin adds, “Managing a specialty program is a great responsibility and great opportunity. It has proven to be a solid path to career progression for individual agents and growth for independent small to mid-sized agencies.”

“Most importantly,” summarizes McIntyre, “the best programs rely on local perspective and expertise. Your market insights, people skills and energies will define your program’s success.”