5-Star Program Administrators and Carriers 2024

The U.S. program space has seen exponential growth over the past decade, with data showing a staggering 352% increase from 2010 to 2022. According to the latest figures from the Target Markets Program Administrators Association (TMPAA), the market exceeded $80 billion in 2023 and is projected to surpass $100 billion in the near future. This upward trend is fueled by Program Administrators (PAs) who have carved out niches and specialist lines, providing unique value to both carriers and insureds. This article explores the key drivers behind this growth, the success strategies of top PAs and carriers, and the evolving dynamics of the market.

The Role and Advantages of Program Administrators

Program Administrators have become vital players in the insurance industry, primarily by managing niche risks that require specialized underwriting expertise. Carriers are increasingly relying on PAs to handle these niche risks, which results in lower loss ratios and allows carriers to focus on broader business strategies. TMPAA research indicates that 83% of PAs plan to introduce new programs within the next two years, while 96% of carriers intend to add new programs over the next three years. This proactive expansion reflects the confidence both parties have in the value of specialized programs.

According to Gene Abbey, director of insurance services and education at TMPAA, PAs provide significant benefits to carriers by reducing expenses, offering specialized underwriting expertise, and enhancing overall loss ratios. For PAs, partnering with carriers allows them to refine their niche products by customizing coverages and pricing, leading to profitable and sustainable programs. Often, these successful programs are sold or acquired within a few years, generating substantial returns on investment.

Expansion Plans and Market Dynamics

The rapid growth and expansion plans of PAs and carriers underscore the importance of specialization and adaptability in today’s market. With the majority of PAs and carriers planning to launch new programs, the industry is set to evolve further, driven by the need to address emerging risks and market demands. This growth is not just about increasing the number of programs but also about enhancing the quality and relevance of these programs to meet the specific needs of clients.

Profiles of Top Program Administrators

To identify the best performers in the program space, Insurance Business America surveyed brokers, carriers, and PAs. This extensive process highlighted 14 program administrators and 10 carriers that were awarded 5-Star status for outstanding performance over the past year. Let’s take a closer look at some of these top PAs and their strategies for success.

MiniCo Insurance Agency Niche Focus and Specialization

MiniCo Insurance Agency has experienced remarkable growth over the past decade, expanding from a few programs to 19 as of 2024. The company plans to launch another two to three new programs before the end of the year, demonstrating its commitment to continual expansion. According to Jim Henry, president of MiniCo’s national programs division, the key to their success lies in a strong focus on niche classes of business.

MiniCo’s largest programs include Nonprofit and Social Services, Commercial Self-Storage, New York Contractors Liability, and Artisan Contractors. The company’s specialization, expertise, and experience in these areas are major draws for agents and brokers. MiniCo’s teams are dedicated to each program, with specialized underwriters who fully understand the risks, exposures, market trends, and unique industries they serve. This focused approach allows MiniCo to provide exceptional service and create tailored solutions that meet the specific needs of their clients.

REInsurePro Agent-Centric Approach and Long-Lasting Relationships

Another standout 5-Star Program Administrator is REInsurePro, which attributes its success to its agent-centric approach and strong relationships with carriers. Vice president of business operations, Casey Carter, emphasizes the importance of treating agents as clients, as their success directly impacts REInsurePro’s performance. By providing agents with the necessary tools, training, and support, REInsurePro ensures that its programs are accurately represented to insureds and effectively meet market needs.

CEO Casey Carter has forged long-lasting relationships with top residential and commercial insurers, allowing REInsurePro to secure carrier contracts on master policies through the REInsurePro National Real Estate Insurance Group. This strategic alignment enables the company to offer specialized coverage for surplus investment properties, DP3, and other niche areas. REInsurePro’s commitment to its agents and focus on building strong partnerships have been key drivers of its success.

Ryan Specialty National Programs Niche Industry Expertise

Ryan Specialty National Programs is another top performer recognized for its focus on niche industries and its ability to address unique coverage issues. The company’s approach involves identifying specific risks within niche markets and developing products that provide targeted solutions. For example, their pest control program offers coverage specific to addressing wood-destroying insects like termites, while their fire suppression program addresses halon gas-related risks.

Co-president Chris Kelleher highlights the importance of collaboration between underwriters and carriers in developing these specialized coverage forms. Ryan Specialty National Programs differentiates itself with a dedicated focus on niche industries, supported by a robust infrastructure that includes actuarial, claims, and modeling resources. With a team of over 40 underwriters, many of whom have more than 20 years of industry expertise, the company brings a deep understanding of common perils and strategic risk selection to the table.

Professional Program Insurance Brokerage (PPIB) Partnership and Exclusivity

Professional Program Insurance Brokerage (PPIB) stands out for its emphasis on strong partnerships and exclusivity in program development. According to business development manager Colleen Ryan, successful programs thrive when both the program administrator and the carrier are fully engaged and committed to the partnership. PPIB’s programs are developed in close collaboration with carriers, ensuring that both parties are aligned in their goals and strategies.

Exclusivity is a critical component of PPIB’s approach, as it allows the company to build strong, profitable programs that endure over time. PPIB’s comprehensive understanding of its niche markets enables it to deliver competitive coverage paired with personalized service. The firm also takes on a significant role in marketing, providing essential support to carrier partners by managing the crucial marketing aspect of program development.

Risk Placement Services (RPS) Talent and Relationship Management

Risk Placement Services (RPS) is another 5-Star winner that prioritizes strong relationships and talent management. RPS’s model of maintaining high performance enables clients to focus on their business operations, knowing that they have reliable support from their program administrator. Russell Duffey, president of programs at RPS, emphasizes the importance of recruiting, retaining, and developing top talent who align with the company’s culture of creativity and collaboration.

RPS offers standout programs such as the Public Entity All-Lines Aggregate package, which provides comprehensive coverage solutions for municipalities, schools, states, and other public entities. Additionally, their Golf and Country Clubs Package/Specialty Lines focus on private golf and country clubs, semi-private and daily fee courses, private tennis clubs, and golf management companies. RPS’s deep industry expertise, with program managers having 25 to 30 years of experience underwriting specific classes and lines of business, sets it apart as a leader in the program space.

Best Practices of Top Carriers

In addition to recognizing top Program Administrators, the 5-Star Awards also highlight the best carriers in the industry. These carriers are known for their commitment to supporting PAs with expertise, exclusivity, and value-added services that go beyond traditional insurance offerings.

Arch Insurance Expertise, Exclusivity, and Value-Added Services

Arch Insurance is renowned for its industry-leading practices, which include ensuring that each program manager has at least 15 years of experience. The firm places a high value on exclusivity, understanding the importance of unique partnerships with PAs. Paul Sullivan, executive vice president of P&C Programs at Arch Insurance, explains that the company commits to not setting up competing programs that conflict with those of their PAs. This exclusivity fosters trust and collaboration, allowing both parties to focus on mutual growth and success.

Arch Insurance’s depth of talent enables it to stand out as a carrier, offering extensive insurance expertise in industry issues, solutions, loss control, and claims. The company seeks to partner with PAs who bring expertise, information, and value, working together to achieve profitability and growth. Arch’s approach emphasizes the importance of value-added services, such as in-house loss prevention, educational materials on industry issues, and business management advice, which help differentiate their offerings in the market.

The Future of Program Administrators and Carriers

The program space in the U.S. is poised for continued growth, driven by the ongoing expansion plans of Program Administrators and carriers. The success of top PAs and carriers hinges on their ability to specialize, build strong partnerships, and provide value-added services that meet the unique needs of their clients. As the market evolves, the focus on niche industries, tailored solutions, and strategic collaborations will remain critical to achieving sustainable success. By leveraging their expertise and maintaining strong relationships, the best PAs and carriers will continue to thrive in this dynamic and competitive landscape.

FAQs

1. What is a Program Administrator (PA) in the insurance industry?
A Program Administrator (PA) is a specialized insurance professional or company that develops and manages niche insurance programs on behalf of carriers. PAs handle underwriting, pricing, marketing, and often claims management, focusing on specific industries or classes of business.

2. Why are Program Administrators important for carriers?
Program Administrators provide carriers with access to niche markets and specialized underwriting expertise, which can lead to lower loss ratios and reduced expenses. They enable carriers to quickly enter new lines or classes of business without the extensive groundwork, making it easier for carriers to expand their offerings.

3. What are some key strategies used by successful Program Administrators?
Successful Program Administrators often focus on niche markets, build strong relationships with carriers, and provide specialized underwriting expertise. They also emphasize exclusivity and collaboration, tailoring their programs to meet specific client needs.

4. How do carriers benefit from partnering with Program Administrators?
Carriers benefit from reduced operational costs, access to specialized underwriting talent, and improved loss ratios. By partnering with PAs, carriers can expand their market presence and profitability through carefully managed, niche-focused programs.

5. What are the expansion plans for Program Administrators and carriers in the coming years?
According to TMPAA data, 83% of Program Administrators plan to launch new programs within the next two years, and 96% of carriers intend to add new programs in the next three years. This growth highlights the ongoing demand for specialized insurance solutions.

6. What sets top Program Administrators apart from their competitors?
Top Program Administrators differentiate themselves through their deep industry expertise, niche focus, strong carrier relationships, and commitment to exclusivity. They also invest in specialized underwriting teams and provide comprehensive training and support to their agents.

7. How do Program Administrators and carriers collaborate to develop successful programs?
Collaboration between PAs and carriers involves sharing expertise, aligning on strategic goals, and co-developing customized coverage forms that address specific risks within niche markets. This partnership approach helps ensure the success and profitability of their programs.

8. What role does exclusivity play in the success of Program Administrators?
Exclusivity allows Program Administrators to build strong, unique programs without the risk of direct competition from other PAs within the same carrier. This exclusivity fosters trust and collaboration, leading to more stable and profitable programs.

9. What value-added services do top carriers offer to their Program Administrators?
Top carriers provide value-added services such as loss prevention, educational materials on industry issues, and business management advice. These services help PAs differentiate their offerings and enhance the overall value of their programs.

10. What is the future outlook for the U.S. program space?
The U.S. program space is expected to continue its rapid growth, driven by the expansion plans of both Program Administrators and carriers. The focus on niche markets, specialization, and strong partnerships will remain critical to sustaining this growth and achieving long-term success in the industry.