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Program Insurers and Administrators

How has the soft market affected the programs business?
Brendan Brownyard: For any program, an individual risk that may have been acceptable 5 years ago may not be acceptable at today's pricing. It's also possible that a previously desirable risk may, for its own competitive purposes, accept work that we would consider unreasonably hazardous from an underwriting standpoint. Experienced program managers know that after 5 years of shrinking rates, the effort to maintain underwriting standards is critical to a program's success; they also know they must compete not just by price but also in service and expertise. For example, our efficiency in handling complex claims through our in-house claims facility (Brownyard Claims Management, Inc.) and extensive knowledge of the industries we service have proven to be invaluable tools.
Glenn Clark: Rockwood's core prospects are in management liability. The soft market has put downward pressure on rates on employment practices and made it harder for us to keep renewals at a credible rate. Larger E&O accounts are especially vulnerable to carriers who exhibit some pretty risky pricing strategies. We have a duty to protect our carrier partners, and program business is the best way to have deeper relationships with a partner. I simply cannot imagine what a non-affiliated wholesaler must be going through,
Greg Thompson: There are many carriers expanding into the programs market and those who are already in the market are expanding into new programs. As a result, there is increasing competition which should result in continued downward pressure on pricing in 2010.