How to Launch New Programs in a Changing Market
American Agent & Broker › Vol. 77 Nbr. 11, November 2005
Linked as:
Summary
In an interview, Greg Thompson, CPCU, president of Thomco, who is in line to become president of the Target Markets Program Administrators Association in 2007, talked about what it takes to get a program insurer to say yes. He said as a general rule, it is difficult to get a new program off the ground, especially after the latest hard market. A lot of research needs to be done in creating a new program, and it is extremely time-consuming. Some program insurers pay commissions on a sliding scale, in which compensation varies according to the profitability of the program, he said. The Target Markets Program Administrators Association has 30 program companies as members. You have to be sure that you have a niche and a plan that can reasonably be expected to produce an underwriting profit for the insurance company, he added.
See the full content of this document
Extract
How to Launch New Programs in a Changing Market
PROGRAM business constitutes one of the most innovative segments of the insurance industry. Particularly for businesses that have difficulty obtaining coverage, program administrators often are able to draw on their expertise in a niche to develop highly customized solutions for it that include tailored policy forms and losscontrol services.
Lately, however, program administrators have not found it easy to develop new programs for needs and opportunities they perceive in the market. While softening market conditions have renewed some insurers' interest in programs, they are requiring program administrators to make a strong case before agreeing to put their paper behind a new venture.Greg Thompson, CPCU, president of Thomco, has pitched a lot of programs to carriers over the years. Recently, we talked with Thompson, who is in line to become president of the Target Markets Program Administrators Association in 2007, about what it takes to get a program insurer to say yes. Following is an edited transcript of our ...See the full content of this document
Sponsored links
