Our Gallagher Bassett Carrier Practice team took full advantage of the ample networking and educational panels while discussing opportunities to collaborate and prosper in the program business space.
The TMPAA is an organization of managing general agents (MGAs), program administrators (PAs), carriers, and service providers dedicated to the unique challenges of program specialists, focusing on insurance products targeted to a niche market or class, generally representing a book of similar risks placed with one carrier. Administrative responsibilities may include underwriting selection, binding, issuing, billing, data gathering, claims management, and loss control.
The specialty and alternative markets have been growing in recent years, driven by cyclical and structural factors, and in 2022, the programs sector accounted for an estimated $70 billion dollars in premiums, showing a growth of more than 30% since 2020. In light of this incredible growth, below are some of our key takeaways from conversations and noteworthy trends at this year’s annual summit.
Connecting MGAs with the Right Carrier Partner
Whether a new MGA entrant or a group of well-seasoned professionals in the MGA space, many PAs are searching for help finding the right carrier partner. In fact, entrepreneurs are looking for help finding recommendations for PAs and fronting companies that will work in their best interest and set a foundation for success. When it comes to claims, the current model feels more proactive, considering that claims might have been “left for last” in the past. Our team at GB pays close attention to the capacity that each carrier has for lines of coverage and verticals to be supportive of the third-party administrator (TPA) model, and to streamline the partnership to benefit the business.
Importance of Brand Protection
Across all of our conversations, we noticed a sincere sense of pride from PAs and carriers regarding their brand and the programs they put out to the marketplace. It follows that they are looking to partner with a TPA that understands their vision for the future of the program, is experienced in providing superior client service, and is invested in protecting their brand and reputation. As a brand-conscious company with a rich history, we understand that finding this alignment around messaging and service delivery is necessary to set expectations that will guide our collaboration going forward.
Emphasis on Timely Data Insights
One recurring topic in conversations was the importance of data-driven insights for both new and established members in the space, where one individual from a major carrier stated, “We are looking for stronger analytics in everything we do.” Additionally, many carriers are looking for a TPA with a national (and in some cases global) footprint that can deliver timely, succinct data capture and analytics reporting both on specific claims and across the book of claims. Given GB’s global footprint, award-winning LUMINOS RMIS system, and dedicated carrier claims management services, we are well-positioned to be the TPA of choice for program managers and carriers. Our organization consistently prioritizes investing in our ability to deliver detailed reporting on claims management, loss prevention cycle, closure ratios, cost per claim, and expenses, leading to improved underwriting outcomes and growth opportunities.
Legacy Solutions: Looking for an Edge
With a number of new entrants in alternative markets space, an ongoing theme observed in 2022 that is likely to continue into 2023 and beyond is the interest in better serving legacy books of business. Both carriers and intermediaries continue to show interest in large-scale due diligence projects and in evaluating the status of legacy claims prior to fully taking over books of business— or consulting with a claims expert for fresh ideas and aggressive recommendations to expedite closure. PAs are looking for TPA partners that understand specific MGA program verticals, including transportation, construction, public sector, and cyber to name a few. Similarly, reinsurers are looking for a lift in pace-of-closure in what are viewed as stagnant books of claims. These partners are seeking a team with a sense of urgency in claims handling, for the assurance that files are properly reserved, and for partners who have a resolution plan.
Final Thought: TMPAA is a Little Bit “Magic”
One of the highlights of the TMPAA annual summit was the kick-off session on the second day starring the basketball legend Earvin “Magic” Johnson whose inspirational and interactive speech was entitled, “Winning at All Levels: Life, On the Court, and in Business.”
He recounted his storied rivalry with Larry Bird, describing how their friendly competition helped both athletes achieve great results for their respective teams. His story was a great analogy of what we do in our insurance industry as our competition can make each one of us a stronger advocate for our clients. We know who our competition is and strive to differentiate ourselves daily as we guide, guard, and go beyond. The TPAs, carriers, PAs, and various service providers compete for business and talent on a regular basis, yet at the TMPAA event, each one of us was engaged; smiling; catching up with other members; and discussing new opportunities, the challenges in our business, and how we are better together in developing solutions.
Connect with Amy O’Brien to see how partnering with Gallagher Bassett can help you capitalize on strategic growth opportunities.
