5-Star Program Administrators and Carriers 2024
Jump to winners | Jump to methodology
Drivers of exponential growth
The United States program space has grown dramatically with data showing a 352 percent leap between 2010 and 2022.
Latest figures from the Target Markets Program Administrators Association (TMPAA) showed the market exceeded $80 billion in 2023, with future estimates above $100 billion.
This upward trend is the product of program administrators (PAs) carving out a niche and specialist lines. Carriers are also relying on PAs to manage niche risks resulting in lower loss ratios. TMPAA research also shows that 83 percent of PAs plan to introduce new programs in the next two years and 96 percent of carriers plan to add new programs in the next three years.
Carriers have become more appreciative of these specialists rather than a team of generalists.
Gene Abbey, director of insurance services and education at TMPAA, says, “It lowers expenses for the carrier, offers a specialty underwriting expertise, and results in better loss ratios overall. Additionally, it allows the carrier to quickly enter a new line or class of business without the extensive groundwork already handled by the program administrator.”
And he adds, “For the program administrator, it enables them to enhance their specialized niche products by customizing coverages and pricing to effectively execute a profitable program. Oftentimes, within just a few years, the profitable programs are sold or acquired for multiples on EBITA.”
Insurance Business America surveyed brokers, carriers, and PAs to determine the best performers over the past 12 months. Following this extensive process, 14 program administrators and 10 carriers were awarded 5-Star status for outstanding performance.
What are the best Program Administrators doing?
While there’s plenty of momentum for PAs to thrive, only the top performers are being rewarded by partnering with carriers.
One of them is MiniCo Insurance Agency, which, over the past decade, has gone from a handful of programs to 19.
“We plan to launch another two to three new programs prior to the end of 2024,” says Jim Henry, president of MiniCo’s national programs division.
“The key to our programs is that we’re very focused on niche classes of business”
Jim HenryMiniCo Insurance Agency
The firm’s largest programs include Nonprofit and Social Services, New York Contractors Liability, Artisan Contractors, and Hired and Non-Owned Auto for Food/Cannabis Couriers.
“Our agents and brokers come to us because of our specialization, expertise and experience in the program space throughout our underwriting and claims teams,” comments Henry. “We have teams dedicated to each program with specialized underwriters who fully understand the risk, exposures, market trends, and the unique industries that we serve.”
This strong service mandate is integral for fellow 5-Star winner REInsurePro.
“We always try to put ourselves in their seat and make decisions based upon the right one for our agency partners that are writing through our program,” says vice president of business operations, Casey Carter. “We’re a program manager and if we don’t have our independent agents writing through our program, we’re not making any money.”
“We truly believe that we are the leading program manager in this space”
Casey CarterREInsurePro
The catalyst behind MiniCo’s program development are long-lasting relationships forged by CEO Shawn Woedl with top residential/commercial insurers. Woedl’s sterling work allows carrier contracts on master policies to be written with the REInsurePro National Real Estate Insurance Group.
Carter adds, “We have made significant strides to train our agents in the space of surplus investment properties, DP3, etc., and making sure that they have all the tools necessary to write through our program, and to understand and accurately represent our program to their insureds.”
REInsurePro, like several of the leading PAs, has little communication with insureds.
“It’s up to our agents to communicate everything about our program. If we’re not treating our agent as a client, our team would fail,” explains Carter.
Ryan Specialty National Programs, also a 5-Star winner, focuses on identifying niche industries where they can provide a product that tackles unique coverage issues.
“Our pest control operation has coverage specific to addressing wood-destroying insects like termites. In the fire suppression space, forms address halon gas-related risks in detail,” says co-president Chris Kelleher. “These are risks that our underwriters encounter every day but may only filter through a retail agent’s office a few times a year. Retailers can take advantage of the program underwriters’ expertise to assist with finding solutions for their clients.”
“As experts in our niche industries, we are confident in our ability to deliver results that are mutually beneficial. Collaborating with carriers who understand this model is critical to our shared success”
Chris KelleherRyan Specialty National Programs
The firm further differentiates itself with a dedicated focus on niche industries supported by a robust infrastructure including actuarial, claims, and modeling resources. Its 40+ underwriters, many with over 20 years of industry expertise, bring stakeholders a deep understanding of common perils.
Co-president Bill Evans adds, “Our underwriters use their expertise to collaborate with carriers to build coverage forms that are bespoke for the industry classes we underwrite. We focus on strategic risk selection and pricing, while providing an exceptional customer service experience for our clients.”Being able to differentiate itself is something Professional Program Insurance Brokerage (PPIB) works hard to deliver. Its programs are developed in close collaboration with carriers.
“These programs thrive only when both partners are fully engaged. As a program administrator, exclusivity is crucial for building strong, profitable programs that endure over time,” says business development manager Colleen Ryan.
The firm has comprehensive grassroots understanding, which it projects to the market.
“The clients who benefit most from working with PPIB are those who need expert coverage paired with personalized service. We collaborate directly with insureds, retail agents, and wholesale brokers, delivering competitive coverage with a smile,” adds Ryan. “Marketing is often a key element our carrier partners rely on us to deliver. In our partnerships, we specialize in handling that crucial marketing aspect.”
“We manage relationships with our carriers by being fully engaged partners. We stay connected through frequent virtual and in-person meetings, addressing issues as they arise”
Colleen RyanProfessional Program Insurance Brokerage
Risk Placement Services (RPS) is another 5-Star winner that prioritizes strong relationships. Its model of maintaining high performance enables clients to focus on their business operations.Russell Duffey, president of programs, shares, “In an industry where relationships and expertise are paramount, our commitment to recruiting, retaining, and developing top talent who align with our culture of creativity and collaboration has led to significant growth in both the diversity and experience of our teams over recent years.”
RPS’s standout programs include a Public Entity All-Lines Aggregate package program providing a solution for municipalities, schools, states, and other public entities, plus their Golf and Country Clubs Package/Specialty Lines focusing on private golf and country clubs, semi-private and daily fee courses, private tennis clubs, and golf management companies.
“We are solving for our client’s needs and helping them become successful”
Russell DuffeyRisk Placement Services
Duffey adds, “Our exclusive programs are backed by unparalleled industry expertise, with RPS Signature Programs’ managers having 25 to 30 years of experience underwriting specific classes and lines of business. This deep well of knowledge is a distinctive advantage that is difficult to replicate, ensuring that our clients receive the most informed and effective solutions.”
What are the best Carriers doing?
Arch Insurance is renowned for industry-leading practices, which include ensuring each program manager has at least 15 years of experience. The firm is also aware of the significance of exclusivity to PAs.
“We know the importance of exclusivity and commit that we will not set up a competing program that conflicts with the program administrator,” explains Paul Sullivan, executive vice president, P&C Programs. “If there are nuances based on class specifics or geography, we make sure to discuss those issues upfront for transparency.”
“We offer financial strength but also breadth of capabilities to meet a number of program administrator and insured needs”
Paul SullivanArch Insurance
The depth of talent in Arch’s ranks enables it to stand out as a carrier because it can offer extensive insurance expertise in industry issues, solutions, loss control, and claims.
Sullivan says, “We seek to partner with PAs, each bringing expertise, information, and value to find the best solutions in achieving profitability and growth. This approach leads to mutually beneficial outcomes and is why over half of our business is with PAs who have been our partners for over 10 years.”
The burning question though is, what do the best carriers want from their PAs?
Sullivan shares that insight and highlights how the best PAs offer more value-added services to their clients than just an insurance quote.
“Robust in-house loss prevention services are a good example of what a program administrator can offer to provide value to their agents and insureds. Educational materials on loss prevention, industry issues, and business management advice are other examples of how a program administrator can differentiate what they offer,” he explains.
