The fourth annual State of Program Business Study was released at the 14th Annual Summit in Scottsdale last week and offered important insights into this industry segment.
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.”
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%, the growth in direct premiums written for commercial lines increased by only 4.6%.
- Recruitment and training trends in the program space shows that hiring and retaining qualified personnel continues to be a major challenge. Responses indicate that PAs are boosting training programs to better support the needs of both new and experienced underwriters.
- Survey responses show that PAs 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 PA responses to 2013 responses showed an average of 3.1% 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 60% of their 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.”
Full study is available to all TMPAA members.
Program Business Operations Boot Camp
March 12 -13, 2015
Hyatt French Quarter Hotel
The TMPAA in partnership with the Operations Advisory Service of TMPAA member ReSource Pro will be offering a program administration focused two-day workshop designed to assist insurance operations leaders facilitate growth and profitability.
This training targets the operational managers at program administrator agencies.
for Program Business Boot Camp agenda, registration and more.
NEW RESOURCE: Program Carrier Report
Members will receive the TMPAA Program Carrier Report this month in the mail. The Association has negotiated with Alirt Research to create this extensive report providing important information on the financial status of all major program carriers. Developing this report was made possible by a sponsorship from Berkley Program Specialists. It is our plan to provide this report to all active Program Administrator members twice annually along with periodic updates via email. We believe this information will be a significant resource for any market decisions you may have to make regarding your program(s).
Get LinkedIn and Follow the TMPAA
Join over 800 members in the
TMPAA LinkedIn group
Follow the TMPAA on Twitter
for the latest Association news