The 24th Annual Target Markets Program Administrators Association (TMPAA) Summit brought nearly 1,700 attendees to Scottsdale for three days of meetings, networking with peers, educational sessions, and charity. I, along with Gallagher Bassett (GB) Carrier Practice team members Jon Stambaugh, Jerilyn Kelly, Julia Houk, and Denny Johnson, attended the event.
We’re excited to share some of our key topics of conversation from the event to give our readers a better understanding of how GB services this market and why we are considered a partner of choice for outsourced claims management in the MGA, PA, and specialty program space.
Leveraging AI and Improving Data Management
The topic of artificial intelligence (AI) and data management surfaced in several meetings and was also the subject of one of the featured panels at the conference (“Unlocking the Future: AI’s Evolution in the Program Space”). With today’s insurance industry emphasizing digital tools more than ever, turning idle data into actionable strategies for operational success is the path forward for programs to cement their competitive edge.
“Companies are embracing AI in all aspects, from underwriting to claim resolution, to enhance efficiency and the customer experience,” added Denny Johnson, VP — Carrier Practice Sales. “This transformation allows for more accurate risk assessment, faster claims processing, and more tailored insurance solutions.”
Based on discussions with program partners, there is a need for greater data accuracy and a more thorough capture of data to increase insights and enhance decision-making capabilities. Some MGAs are in the process of upgrading platforms to address this need despite costly investments.
Many organizations excel at stockpiling transactional data; however, those that tap into the insights of their risk information are well positioned to rise above the rest. Our award-winning RMIS platform, Luminos, is designed to capture client/program-specific data points on occurrences, specific claim features, and claim payments. Additionally, custom fields can be installed at first notice of loss and updated throughout the life of a claim.
“AI and advanced data analytics continue to be key trends and major topics of conversation within the industry,” cited Julia Houk, VP — Carrier Practice Sales. “Program administrators are looking for ways to help reduce underwriting costs and improve accuracy, which is vital for competitive pricing.”
Additionally, carrier and MGA partners are interested to know how our team at GB is leveraging AI in the claims management process to improve claim outcomes, create opportunities, increase operational efficiency, and solidify a competitive edge for clients.
Expanding Scale of Claims Teams
MGA and PA competition for talent is fierce, and staff absences due to illness or vacations can take a devastating toll on smaller claims departments. As an MGA builds out its portfolio, access to quality claims management experts with deep technical expertise and flexible staffing to match the ebbs and flows of the business is critical.
“Many of my conversations focused on increased demand for specialty and niche coverages,” said Jerilyn Kelly, VP — Carrier Practice Sales. “This continued growth brings its own challenges including talent recruiting and retention for MGAs and PAs.”
That is easier said than done, which is why it is beneficial to have a partner who is well-versed in expanding, supplementing, and supporting the unique claims arrangement needs of MGAs and PAs. For example, some MGAs handle claims in-house but, when writing new, emerging coverage lines, can benefit from outsourcing to a specialist with access to teams of experts in professional lines, Cyber, D&O, and product liability, as well as traditional lines such as auto and property liability.
Jerilyn also noted that there is competition for both tenured staff who are specialists and for bringing in new talent. One way to address this is recruiting from colleges and universities, as well as providing a forum for students to connect, such as the event’s first Student Talent Open House that GB proudly sponsored at this year’s event.
The emphasis on bringing in students and new talent is increasing. We were fortunate to have several students at our Student Talent Open House, and for some, this was their second appearance at a Target Markets conference. We had a steady influx of MGAs and carriers sit down with students and talk about job opportunities. Jennifer Guidry, Division VP of Business Development and Marketing at Great American, and I spent one-on-one time with the group of students discussing the role of carriers, underwriting, and claims management.
We’re excited to see that the TMPAA has an active webpage that is now tracking job opportunities and internships for college students, and our Student Talent Committee is always looking to expand that list.
Partnering with Reinsurance Brokers
At GB, we are seeing an increase in reinsurance brokers and carriers engaging our team in the development phase of new programs or reformulation of existing programs. The benefit to partnering early in the formation or reformation of the program is having the ability to tailor specific claims management processes, suggest improvements to draft policies, and work together to formulate claim guidelines, ultimately improving overall program efficiency, exposure, and total spend.
Uptick in Captives
I was pleased to see how often the use of captives as a financial tool came up in meetings. There is a lot of curiosity about how to approach setting up a captive, what it does for an MGA, and what the financial implications are. While captives have not taken off in volume for programs yet—I predict they will in the future as the captive market is ever-increasing—they inherently support creativity and problem-solving of insurance needs. Once a captive is established, it is essential to be prepared for the claims that result.
Above all, growth continues for MGAs and PAs. Pipelines are healthy, and our partners are eager to expand. Having access to the right claims professionals with niche expertise is essential to the success of any program, as it directly impacts the quality of service, program profitability, and customer satisfaction. Partnering with GB’s Carrier Practice brings expertise, efficiency, and data insights that will enhance the program’s overall performance. We offer knowledge, operational efficiency, cost control, and regulatory compliance—all of which are essential to building a successful, sustainable program.
If you would like to learn more about how our team can support your ability to navigate the specialized nature of program business and fulfill unique claims management services, please reach out to us directly.
