Target Markets Announces 3rd Annual “State of Program Business” Research Project

Wilmington, DE —The Target Markets Program Administrators Association’s (TMPAA) third annual survey research project on the size and dynamics of the program business market is now underway. Last year the survey identified that the program business insurance market generated nearly $25 billion in annual premium revenue in 2011.

The results of the study will be presented at the 13th Annual TMPAA Summit in Scottsdale, AZ from Oct. 21-23. Carly Fiorina, former CEO of Hewlett Packard will be the keynote speaker at the meeting which is expected to draw more than 800 insurance executives.

TMPAA completed the first study of the program business market in 2011 and continues the research every year. Responses continue to increase with more than half of the TMPAA membership responding to the survey.

David Springer, President and COO of NIP Group, Inc. and current TMPAA president, said, “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 Study is in field seeking information from program administrators, managing general agents, wholesale and retail brokers and insurance carriers.

Springer said, “Last year’s survey results clearly demonstrated that the program business market is one of the fastest growing segments of the commercial insurance business.”

The TMPAA describes program business as insurance products targeted to a particular niche market or class, generally representing a book of similar risks placed with one carrier. Program Administration includes product marketing, underwriting selection, binding/issuing, and may also include billing, premium collections, data gathering, claims management/loss control and possibly risk sharing. Specialists distribute these programs on a retail, wholesale or direct basis.

Gary Romay, Marketing Director at Scottsdale Insurance stated, “Scottsdale Insurance Company and Western Heritage Insurance Company are proud to sponsor the Program Business Study for TMPAA in 2013. The Study will provide the TMPAA membership better information about the size and scope of this industry segment, areas of growth, trends and opportunities. As we accumulate more data each year, it will allow us to develop a growing body of benchmarking data that will allow all of us to better focus our resources on opportunities that will generate the greatest returns.”

The Study will be conducted by the research firm Advisen. Advisen will look at both Program Administrators and Program Insurance Carriers in their data gathering efforts. The objective of the research is to provide the program industry with information that documents trends in the size and dynamics in the program business market. The analysis will include a survey of program administrators and carriers. Additional data and information will be drawn from the Advisen databases of retail brokers, managing general agents and underwriters and wholesale brokers. The research will also leverage Advisen data on policies, premiums, coverage and losses. Advisen is also a member of TMPAA.

A copy of the executive summary of last year’s “State of Program Business” study is available on the TMPAA website, www.targetmarkets.com. For additional information about this study, contact the TMPAA at 877-347-5700.

Program Specialists / MGA’s interested in learning more about the TMPAA or attending the fall Summit meeting can visit the Association website at www.targetmarkets.com, or contact Ray Scotto – Executive Director at ray.scott@targetmkts.com.



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