December 5, 2013 (by John Willemsen) – With a faster rate of growth than the overall property/casualty insurance market, the commercial program business segment can deliver true benefits for a carrier that dedicates the time and resources to understand and serve this segment.

But, like other areas of the insurance business, the program space requires expertise and focus for both carriers and program administrators (PAs) to be successful.

The Target Market Program Administrators Association (TMPAA) “2013 State of Program Business Study” estimated that programs accounted for $27.4 billion in annual premium in 2012 or roughly 10 percent of the overall commercial P/C premium in the United States.

Premiums in the PA market rose by 10.8 percent from 2011, compared to 3.3 for the general market, according to TMPAA. Lastly, the number of individual programs grew by 3.5 percent since 2011 to 2,075 programs in 2012.

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