Insurance agents and brokers today need more options and access to specialists to navigate our current complicated business environment and, at times, challenging insurance market. Over the last few years, the insurance industry has seen its share of rate increases, appetite restrictions, and underwriting changes to address evolving risks and a rise in the frequency and severity of losses, particularly in certain niche segments and product lines. A Program Administrator offers the expertise and specialization insurance agents and brokers require to effectively compete today and help clients become and remain risk-ready.
In some industry segments, insurance market availability is difficult to find, particularly when shopping in the admitted market. To address this, Program Administrators often develop specific programs with both admitted and non-admitted (Excess & Surplus Lines) markets. The E&S market in fact has seen a significant rise in the business it writes. According to the 2021 Annual Report of the U.S. Surplus Lines Stamping Offices, surplus lines premiums increased 22% and transactions rebounded almost 6.6% over their 2020 totals in the states with surplus lines stamping offices. The increases represented record levels of premium ($51 billion) and transactions (5.3 million) since the stamping offices began reporting aggregated data on an annual and semi-annual basis.1
Underwriting Authority Facilitates Responsiveness
Because of a Program Administrator’s expertise in a specific industry segment, it often holds the underwriting pen for the programs and product lines it offers. A Program Administrator’s carriers have the confidence in their partner’s ability to accurately evaluate a risk and provide them with the underwriting authority to write the business.
Insurance agents and brokers need to be responsive to their clients’ requests. Having a great relationship/partnership with a Program Administrator facilitates this responsiveness. Program Administrators have a strong understanding of agency or brokerage issues and can utilize their experienced in-house teams to issue quotes, bind and service policies, and handle claims.
Program Administrators Are Innovative
The specialization of Program Administrators also fosters innovation and creativity. Because they work so closely with clients, trade associations, and others in the specific niches they serve, Program Administrators often see opportunities to bring new products together with their carrier partner(s) to market to respond to emerging risks and trends. This offers agents and brokers a broader bandwidth of products and services to strengthen their clients’ protection.
Many of the programs that Program Administrators offer come with risk management and loss control services. Along with their carriers, they can help agents and brokers assist clients to better manage and minimize their exposures for improved safety and fewer losses.
Manchester Specialty is a Program Administrator that provides agents and brokers with the ability to offer a totally integrated business insurance solution around the specific needs of Home Care, Allied Health and Human/Social Services organizations. With more than 40 years of experience, we have the expertise and experience to put together a program that serves your clients. For more information about how our products and services can help protect your insureds, please contact us at 855.972.9399.
1Wholesale & Specialty Insurance Association (WSIA)