“IF WE COULD SHOW YOU A WAY TO IMPROVE THE SUCCESS RATE OF YOUR SUBMISSION TO AN INSURANCE CARRIER AND ACCELERATE THE IMPLEMENTATION OF YOUR PROGRAM, WOULD YOU BE INTERESTED?”

Because of GPW’s keen interest in the answers to that important query, Rough Notes magazine arranged a face-to-face interview with two of the company’s senior associates. That conversation follows:

Rough Notes (RN): We are visiting with Joe Kirsits, F.C.A.S., M.A.A.A, vice president, and Larry Prudhomme, CPA, senior manager, to discuss how GPW can assist new and existing program administrators by making their programs easier to evaluate by the carrier, easier to manage by the administrator, and more profitable for all concerned.

RN: Larry, tell us a little bit about GPW and your interest in Target Markets Program Administrators Association (TMPAA).

Larry Prudhomme (LP): GPW is an Arizona-based actuarial and consulting organization that was formed in September, 1998. Today GPW is composed of the original company, GPW and Associates, Inc., which provides management services, and its wholly owned subsidiary GPW Actuarial Services, Inc.

RN: Joe, what are the benefits of engaging GPW?

Joe Kirsits (JK): GPW strives to partner with our clients throughout the life of the program. We guide and support programs during the submission, negotiation, decision and implementation processes. Once the program is up and running, we can assist in its maintenance by working with key program personnel and the carrier to prepare a comprehensive analysis of the program’s profitability. We think that owners who know the most about their program’s risk profile will differentiate themselves by utilizing this knowledge to increase revenue and earnings for all involved. To the extent that the program has solid data with supporting actuarial analysis, the relationship with the carrier partners will be strengthened.

RN: Joe, please provide some background on what your client should expect in a program report.

JK: Our studies are custom built and tailored to the unique needs of each client. Typically, the first step is to meet with the client to get program history, identify available data, and discuss any historical items that would impact our analysis of the loss ratio projections. Secondly, we will evaluate the loss experience to project our estimate of the ultimate loss ratios for the business under review. The final step is our recommendations to the program owners as to what changes, if any, are needed to meet the objectives of the program.

RN: Joe, in the question discussed earlier, can you expand on how GPW might accelerate the decision making process for the carrier?

JK: While not all carriers require an actuarial report with their program submissions, it has been our experience that those submissions accompanied by an independent actuarial report are far more likely to receive favorable treatment from the carrier than those that do not. The actuarial report provides data, assumptions, analysis and conclusions in a format that can be easily reviewed by the carrier’s management team. This not only cuts down on the time required by the carrier, but in the end, a submission with an actuarial report is more likely to move to the front of the line.

RN: What types of clients has GPW been successful with?

LP: GPW works with a range of clients with a broad spectrum of underwriting risk. Our experience enables us to work with all of the entities associated with TMPAA. Our strength lies in our identification and understanding of the strategic value proposition that our clients provide to their markets. We take pride in our reputation for providing “big company” services with the individualized attention that a “small company” can bring.

RN: Joe and Larry, we appreciate you taking the time to share your expertise by participating in this annual special section highlighting the fruitful interaction amongst TMPAA members. Thank you.

Joe Kirsits and Larry Prudhomme welcome your inquires about GPW’s benefits to program administrators. Contact them at jkirsits@gpwa.com or lprudhomme@gpwa.com or call (602) 200-6900. You can also visit their Web site at www.gpwa.com.