Special Section sponsored by Target Markets Program Administrators Association

The State of the Association

Getting Business Done

If Vince Lombardi somehow ended up in the insurance association business instead of the NFL, his now familiar quote would most likely be "Getting Business Done is not everything, it's the only thing", and he would have been a big fan of the TMPAA.

From its very inception in 2001, the Target Markets Program Administrators Association has defined itself as being dedicated to the unique challenges of program administration. The group has refined this message recently with their descriptor "Where Program Business Gets Done". "Our goal is and always has been, to provide resources and opportunities to get business done," says Ray Scotto, TMPAA Executive Director. "The business generation focus for our events and initiatives has served us and our members well."

The Association received recent validation for this approach in the 2013 Guy Carpenter Annual Program Report. Respondents to that study selected TMPAA meetings as the number one industry event in terms of value provided.

Ensuring that Association members receive this expected value from every TMPAA event was put to the test during the group's 2012 Annual Summit when Super Storm Sandy closed most airports on the east coast, and prevented almost 100 registered attendees from getting to the Scottsdale, Arizona event destination. The TM Board made the decision during that event to offer meeting credits to every member who was impacted by the storm. "We are acutely aware that every dollar our members spend on membership and meeting attendance is an investment in the continued success of their business," stated David Springer, President and COO NIP Group Inc. and TMPAA President. "Providing a meeting credit for our members who could not attend was our investment in their businesses, and the right move for the Association." The Summit, which featured the pre-election presentation of James Carville and Mary Matalin, was still able to provide the networking opportunities and matchmaking between program administrators and carriers that is expected at all TM events.

The TMPAA continues to grow right along with the program business Industry segment. The 2012 TMPAA Program Business Study pegged the probable number of program administrators in the US at 950, controlling 24.7 billion dollars in almost 2000 distinct programs. This number represented a 5% increase from the prior year. The Association now has a total of almost 400 members, 270 of which are program administrator agencies.

While the tools and resources the TMPAA develops for its members further ensures that important return on investment, the centerpiece and greatest value of the Association continues to be the networking and business generation opportunities that come from putting hundreds of program business professionals together at two annual events, and through the various connections now available on the group's website and LinkedIn platform.

"It is hard to put a value on the program business intelligence that is available in this Association," offered Chuck Smith, CEO and owner of Carnegie General Insurance Agency. "Knowing the program strategies of over 50 markets, hearing how other administrators have structured their operations, and making valuable personal connections are proving to be an essential part of our agency's ongoing strategy for success."

Along with the steady growth in membership has come a corresponding increase in resources to help members get business done. One major component of the Association's dedication to its program administrators is the expanding marketing services the group has developed to support its members. TPMS (Target Programs Marketing Services) was created to provide assistance with brand development, website design, social media strategies and more. In 2013, the Association added a news release service to help promote both product and personnel updates to industry news outlets. The jewel of the Association's marketing opportunities, however, remains the group's commercial website, Target Programs.

David G. Hampson, President & CEO of Willis Programs, had this to say about the website, "Target Programs has been a successful vehicle in generating awareness for our 35+ specialized programs and in helping us discover new program opportunities. We frequently receive inquiries from agents/brokers seeking coverage for their insureds. We strive to deliver solutions to help them grow their business. Even if a risk does not fit our programs' appetite, we will evaluate it to determine if there is an opportunity to develop a new program for that class of risk."

Target Markets had some notable successes during this past year.

Documenting the size and characteristics of Program Business had long been a discussion filled with best estimates and guesswork. The first TMPAA Program Business Study in 2011 was conducted with the input of some 92 program administrators, and began to define the program space using the collected data. The success of that study and its recognized value in the industry led to a dramatic increase in participants for the 2012 Study, with over 190 program administrator surveys submitted.

David Springer commented, "With an increased emphasis on profitable underwriting results, limited upward pricing momentum and the seemingly inexhaustible introduction of new capital, documenting the changing dynamics of the program markets becomes even more important."

The third Program Business Study is currently underway with an expanding sample size expected. "The Study will provide the TMPAA membership better information about the size and scope of this industry segment, areas of growth, trends and opportunities," stated Gary Romay, Marketing Director at Scottsdale Insurance. "As we accumulate more data each year, it will allow us to develop a growing body of benchmarking data to better focus our resources on opportunities that will generate the greatest returns." Scottsdale Insurance is a sponsor of the study.

Target University and the CPL (Certified Programs Leader) Designation that is awarded to eligible University graduates, has received high marks from members who have utilized this program focused education. "In our first full year of operation, the Association awarded almost 20 CPL Designations," indicated Greg Thompson, President of Markel Specialty and 'University Dean'. "This year we are looking at doubling that number, with the largest increase coming from program administrators taking advantage of the opportunity. Our carrier members also continue to show strong support for the CPL Designation as well."

When former Joints Chief of Staff Admiral Mullen addressed the TMPAA at their Mid Year event in Baltimore this past May, he spoke about the cyber risks that threaten our nation's critical infrastructure, but also indicated that individual US businesses faced these same threats and may not be adequately protected. "This emerging threat provided another opportunity for the TMPAA to bring additional value to membership in the group" indicated Ray Scotto. "After listening to Admiral Mullen and our members, we decided to develop and provide a risk management and coverage solution that specifically addresses the cyber exposures faced by our program administrators. The solution should be available to the group by the 4th quarter of this year."

This year has also featured an Association push to support and attract more women, and women leaders to program business. "The TMPAA Women's Networking Group was developed to provide a specific forum to advance the role of women in the group," stated Heidi Strommen, President of Pro Host USA, and Chairperson of the Women's Networking Committee. "We received some great feedback during our kickoff event at the Mid Year meeting. As with many other industries, women are an underutilized resource in program administration leadership roles. Our goal is to tap into this resource and develop more women leaders in the field." The networking group has a sizable portion of the 700 individuals already using the Association's existing LinkedIn site. The committee is also planning a workshop on leadership development at the fall meeting in Scottsdale.

"One of the major strengths that distinguishes the TMPAA in the industry is the remarkable talent that exists on our advisory board and committees," stated Ray Scotto. "The direction of the Association, its initiatives and resources are all conceived and nurtured by this group of program experts. They are the main reason the Association has maintained its relevance and continues to grow."

With its consistent focus on program business development, it is probably safe to expect continued growth and innovation from the TMPAA all focused around its mission to "Get Program Business Done." The insurance incarnation of Vince Lombardi would be proud.