WILMINGTON, Del.--(BUSINESS WIRE)--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 7.4 percent reaching $32.3 billion in 2014 up from
$30.1 billion in 2013.
The Target Markets Program Administrators Association (TMPAA) released
the results of its annual research to document the size,
characteristics, growth and other base-line information about the
People are also reading…
program insurance market. “The State of Program Business Study” was
presented at the Association’s 15th Annual Summit in Scottsdale, AZ this
week.
In five years, total program business insurance revenues nearly doubled.
The first study reported $17.5 billion in commercial insurance premium
revenue in 2010. Today it is $32.3 billion.
Additional key findings in the just-released study included:
The number of insurance programs increased slightly with approximately
2,100 Programs and 1,000 Program Administrators.
While the rate of growth of the program industry has slowed from more
than 12 percent in 2013, the industry’s current rate of more than 7
percent from 2013 still substantially exceeds the growth rate of the
commercial lines market. The overall commercial insurance industry
posted a 1.7 percent increase during the same time period.
The study reports that data collection and analysis continue to garner
increasing interest among program administrators.
“Our annual program business study once again confirms that program
business is the fastest growing segment and one of the most vibrant
sectors of the commercial insurance market,” said Heidi Strommen,
president of ProHost USA and current president of TMPAA. “We are able to
maintain our fast-paced growth despite signs of a softening market.” She
added that some of the many challenges facing program administrators
include the use of predictive analytics and the establishment of
start-up insurance programs.
The annual research study was sponsored by Allied World, BMS
Intermediaries, The Chubb Group of Insurance Companies, Ironshore,
NetRate Systems and Rockhill Specialty Programs.
The TMPAA defines 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 risk sharing. Specialists distribute these
programs on a retail, wholesale or direct basis.
The study was conducted by the research firm Advisen and was released at
the Association’s 15th Annual Summit on October 27, 2015. The analysis
is based on the survey of program administrators and carriers. More than
200 program administrators and program carriers responded to the survey.
Additional analysis was drawn from the Advisen databases of retail
brokers, managing general agents, underwriters and wholesale brokers.
Advisen is a member of the TMPAA.
A copy of the executive summary of the “State of Program Business” study
is available on the TMPAA website. For additional information about this
study, contact the TMPAA at 877-347-5700.
Program administrators interested in learning more about the TMPAA can
visit www.targetmkts.com
or contact Ray Scotto, TMPAA Executive Director, at ray.scotto@targetmkts.com.
Contacts
Target Markets Program Administrators Association (TMPAA)
Ray
Scotto, 302-268-1010
Executive Director
3411
Silverside Road
Baynard Bldg. Suite 100
Wilmington,
DE 19810