“Find a need and fill it.”This famous quote by Ruth Stafford Peale (Norman Vincent Peale’s spouse) speaks to the desire of socially responsible individuals and organizations intent on giving back to the community. The quote also encapsulates the business philosophy of the Specialty Markets Division of Munich Reinsurance America, Inc., a member of the Munich Re companies, that might be stated as “Find an underserved insurance niche and then partner with a top managing general agent (MGA) or program administrator (PA) to serve that niche.”

“Everyone in the industry talks about being a true partner, but Specialty Markets Division actually does it,” says Gregory Lang, senior vice president and head of business development for Specialty Markets. “We work only with the best of the best in the program market, offering our partners admitted and nonadmitted multi-line insurance capabilities. Plus, our partners essentially ‘own’ claims administration, risk control, and underwriting. They get to choose whether to provide these services themselves, contract them out to a third party, or obtain these services directly from us.”

This “hands-off” approach unbundles services and allows MGAs and PAs to maintain as much or as little control as they choose. Some PAs prefer to work with a simpler, bundled business model, while others want to manage every component of their premium dollar. Paid claims account for most of the premium dollar, making claims handling a prime target for unbundled savings.

Another important benefit of working with Specialty Markets arises from its reinsurance roots. It does not have an independent insurance agency system that will compete with your business.

One example of finding a need and filling it is a package of policies designed by Specialty Markets for social services agencies, educational institutions, and religious organizations in need of commercial coverage. “These nonprofits often are unable to find all the coverage they need from a single agency,” Lang said. “So, we fill this need by making it easy for an MGA or PA to offer all of these coverages in one package policy tailored to meet their risk profiles.”

The Specialty Markets package of property policies for nonprofits includes property, crime, boiler & machinery, and inland marine coverage, which have been modified and combined and include flexible limits and other features. “A package such as this is not only more convenient for the buyer—it helps our PAs and MGAs retain business because they have everything they need to write an account,” Lang noted.

Program managers have access to a policy rating and issuance system, which supports standard ISO products, workers compensation, and other products with customization. If program managers have their own policy management systems, Specialty Markets works with them to build electronic interfaces.

Specialty Markets can work with program managers to provide access to “A+” rated paper for commercial lines through its affiliate, American Alternative Insurance Corporation, an admitted insurer in all 50 states and the District of Columbia—and more recently, with two other admitted insurers—American Family Home Insurance Company and American Southern Home Insurance Company. If surplus lines paper is needed, The Princeton Excess and Surplus Lines Insurance Company, an affiliate of Munich Reinsurance America, Inc., is available through its licensed surplus lines producers.

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