Although carriers are a little more open to the idea than they were a few years ago, trying to launch a new program is still one of the hardest things to do in the insurance business. I've talked to many frustrated people who were just sure they had a great concept for a new program but couldn't find any takers.

Why is it so hard to get an insurer on board? Well, many of them have opportunities with proven programs. So their attitude sometimes is, "Why consider a startup, when we can look at a program that has a track record?" Also, the success rate for new programs is not good.For a company executive, backing a new program creates a lot of career risk. Most likely this person will have to sell the idea to senior management, which won't be easy. If the executive succeeds and the new program subsequently blows up in his or her face, that executive might have to look for a new line of work.

The importance of dataAnother issue is the ascendancy of actuaries in program business. Today, no deal gets done without the blessing of an actuary. Sometimes, I think they even have veto power over CEOs. If they don't have data for an actuary to check, a company's senior management will be extremely reluctant to take on a deal. And the reality is that for most startup programs, you don't have solid numbers. So that's a tremendous challenge.