Guy Carpenter continues to provide the industry with our annual survey analysis of the current program marketplace from the program issuing carriers’ perspective.
About This Year’s Respondents
As in past years, the respondents were a mix of both traditional insurance companies that have specialty program operations (77 percent) and true, specialty insurance carriers (23 percent). This is the highest percentage of “traditional” carrier response we have had over the course of the seven years we have been conducting the survey and it represents an 8.0 percentage point increase over last year’s results. As carriers continue to search for new areas of premium growth and market share, the traditional insurance companies see programs as one way of achieving these goals.
Those responding this year are widely licensed in more than 40 states with both admitted (97 percent) and non-admitted (94 percent) paper. These represent the highest percentages over the course of the last seven years.
The size of programs targeted by the respondents this year shows a continuing trend towards smaller programs, with a majority of the carriers (83 percent) targeting programs with premium volumes between USD5 million and USD15 million.
All respondents attend one or more annual industry conferences that involve the program space. The American Association of Managing General Agents (AAMGA) and the National Association of Professional Surplus Lines Offices (NAPSLO) continue to be seen as valuable conferences for the carriers. However, respondents ranked the Target Markets Program Administrators Association (TMPAA) conference as the number one conference in terms of value provided.