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Munich Re America’s Specialty Markets

Unbundling Services Brings Success in Niche Markets

Munich Re America’s Specialty Markets has a unique but simple approach to program business: seek out managing general agents (MGA) and program administrators (PA) with proven expertise in a specialty niche and then nurture, nurture, nurture. “Being selective and choosing MGAs and PAs whose underwriting standards are in line with our own allows us to focus on growth and let our MGAs and PAs focus on being risk experts in their niches,” explains Craig Smiddy, Specialty Markets president.

Mutually beneficial growth is Specialty Markets’ focus in the MGA/PA relationship. As a division of Munich Reinsurance America, Inc., and part of the Munich Re Group, Specialty Markets has access to experts in virtually every field of underwriting, actuarial, claims, systems, and supporting services. This expertise, combined with Specialty Markets’ insurance and reinsurance capabilities, results in unmatched product and service offerings. “We take the time to get to know your business and put the appropriate services and resources to work for you. Encouraging growth through new and expanded product lines and into new markets is our strength,” says Smiddy.

One example of this strategy in action is a package of policies designed by Specialty Markets for social services agencies, educational institutions, and religious organizations in need of commercial coverage. “Buyers in these nonprofit niche markets often have difficulty finding all the coverage they need from one agency,” explains Craig. “We made it easy for an MGA or PA to offer all of these coverages in one package policy tailored to meet their unique needs.” For example, the Specialty Markets package of property policies includes property, crime, boiler & machinery, and inland marine coverage, which Specialty Markets has combined and modified, along with flexible limits and other features.

“Not only is the package of policies more convenient for the buyer, it helps our PAs and MGAs retain business,” points out Smiddy. “By giving them everything they need to write an account, we’re also helping them to retain it.”

By targeting best in class underwriters, Specialty Markets is comfortable—depending on the characteristics of the program—with a hands-off approach that unbundles services and allows program managers to maintain as much or as little control as they choose. “Some program managers prefer to work with a simpler, bundled business model,” explains Steve Assennata, head of umbrella programs, “while others want to manage every component of their premium dollar. We understand and even encourage this approach.”

Paid claims account for most of the premium dollar, making claims handling a prime target for unbundled savings. “We’re perfectly willing to unbundle claims services to allow program managers to use approved TPAs [third-party administrators] or handle the claims themselves if they meet our qualifications,” adds Assennata.

Program managers also have access to Specialty Markets’ policy rating and issuance system, which supports standard ISO products, workers compensation and other products with customization. “And,” says Assennata, “we can often work with program managers who have their own policy management systems to build electronic interfaces between their systems and ours.”

Specialty Markets underwrites “A+” rated paper for commercial lines through American Alternative Insurance Corporation, an admitted insurer in all 50 states and the District of Columbia. They also write for surplus lines on a nonadmitted basis through The Princeton Excess and Surplus Lines Insurance Company, accessed by licensed surplus lines producers.

For more information about Specialty Markets’ products and services for MGAs and PAs, visit http://www.munichreamerica.com/specialtymarkets.