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XL Insurance Programs

Those of us who have been in the industry for some time may recall XL Capital’s origins. The company was founded in the mid-1980s by nearly 70 of the world’s largest global corporations in response to a severe shortage of liability insurance in the United States. XL’s insurance company provided excess liability for large commercial customers, primarily companies in the Fortune 1000 and FTSE 100.

While that focus continues today, XL’s direction, capacity and expertise is not limited to only larger accounts. The firm’s XL Insurance Programs unit delivers customized program solutions for program administrators with demonstrated underwriting and marketing excellence. “The majority of accounts we target in XL Insurance Programs are $25,000 and under, whereas much of XL’s focus is on accounts at higher premium levels,” says Scott Yeomans, ARM, vice president of XL Insurance Programs.

That means the programs unit doesn’t compete with XL’s standard insurance operations. “We don’t have an internal agency book that writes the same business as our program administrators,” Scott adds. “That is a major advantage for us.”

Yeomans’ organization handles a number of traditional niche segment programs along with specialty niche programs. “Our programs focus on business owners accounts, Asian-owned business and others,” he explains.

“We search for programs that are either looking to grow their business, expand their product offerings, or both,” Yeomans adds. “A good number of our competitors focus solely on the class-of-business niche. We’ve been successful in adding what I call ‘best in class’ programs, either because the agent has a class of business niche or an expertise niche.”

That was exactly the case for a Target Markets member, RelMark Program Managers, an insurance program administrator for specialty businesses. Relmark provides a comprehensive program designed specifically for fire sprinkler contractors written through XL Insurance Programs. With XL’s help, RelMark not only continues to grow in their particular niche market, but also launched a risk purchasing group last year.

“We each place a high value on technical expertise and loss prevention that can help our clients minimize their specific risk exposures,” said Yeomans. “These shared values have created a productive and profitable working relationship.”

Earlier this year, XL Insurance Programs put another regional program on the books—this one focused on a not uncommon class of business, but one that was new to XL Insurance Programs. “It is a regional public entity program,” Yeomans explains. “It is a single program administrator that offers an open market for all retail agents in the states, with average premiums somewhat above our standard target level.”

Local retail agents serve area public entities while the program administrator handles the overall program. “This particular general agent brings regional, public entity and, of course, insurance experience and expertise to the table, including handling claims for the program,” Yeomans notes. “We took a monoline program and brought to market a package product that includes auto, GL, property, marine and crime, as well as professional liability.

“In our eyes, a long-term commitment is a very important factor. Not only does XL Insurance Programs have extensive staff experience but it also has a program that has been with the company for 25 years,” Yeomans notes. “Plus, our parent organization has a strong balance sheet and recognizes the growth potential in the program arena—growth that does not necessitate substantial additions to staff.”

Target Markets Program Administrators Association provides XL Insurance Programs with the opportunity to reach program administrators who are serious about the business. “The association does a very good job with educational seminars,” Yeomans notes, “and it does a good job of setting expectations for what is needed to take a program, or group of programs, to the next level.”