The challenge of balancing profitability with market share continues for carriers writing PA/MGA program business. This market dynamic was reflected in the level of responses for maintaining rate level (56 percent) and new business production (50 percent) as the largest challenges.
Because of the dynamics of the insurance industry as a whole and the program market segment in particular, the challenges rated as important should be considered collectively rather than individually. A company’s rate filings will affect the rate level it is able to charge. This, in turn, will determine how competitive its product is in comparison to new competitors and, ultimately, if it will be able to maintain or increase current premium levels. This year’s respondents are obviously working through this set of interrelated challenges.