The financial performance of commercial property casualty insurance program administrators continues to outpace the performance of the overall property casualty insurance markets. Program business premium revenues increased by 9.8 percent reaching $30.1 billion in 2013 up from $27.4 billion in 2012.
David Springer, TMPAA president President/COO of program administrator NIP Programs, said “once again, this year’s survey results demonstrate the impact that program administrators have on the marketplace – clearly outpacing the other major segments of the property casualty insurance market.”
More than 60 percent of the 285 TMPAA program administer members responded to the survey. In addition to the questions about the size, growth and profitability of the program business marketplace, the survey asked new questions about underwriter compensation and social media marketing strategies.
Among the key findings:
- Program business is growing more quickly than the overall commercial insurance marketplace. While the size of program business rose 9.8 percent, the growth in direct premiums written for commercial lines increased by only 4.6 percent.
- A closer look at recruitment and training trends in the program space shows that hiring and retaining qualified personnel continues to be a major challenge. Responses indicate that administrators are boosting their training programs to better support the needs of both new and experienced underwriters.
- Survey responses show that administrators do not see social media as an effective marketing tool. LinkedIn and Facebook are the most commonly used social media services.
- A comparison of 2014 administrator responses to 2013 responses showed an average of 3.1 percent growth in the number of programs.
Heidi Strommen, incoming TMPAA president and president of ProHost USA, said “I know of no other trade association that can boast that more than half its members responded to a comprehensive survey of its industry.” Strommen said that, based on the survey’s results, “recruitment and training of qualified job candidates, especially for entry level jobs, continues to be a top priority for both program administrators and program carriers.”
The research study and survey was conducted by Advisen, the commercial insurance research and data analytics firm. The analysis included a survey of program administrators and carriers that operate in the program industry segment. Additional data and analytics were drawn from the Advisen databases of industry metrics.
The full “State of Program Business Study” and power point presentation of the report is available in the members section of the TMPAA website. Others who wish to obtain a copy of the study should contact the Association.
Click here to access the 2014 State of Program Business Study
Click on the company name below to learn more about the 2014 research sponsors.
Allied World Insurance Company • Berkley Custom Insurance Managers • Chubb Group of Insurance Companies • Fireman’s Fund Insurance • Ironshore • QBE