Program business continues to be a large part of the overall commercial insurance marketplace, with $32.3 billion in premiums in 2014, according to the Wilmington, Del.-based Target Markets Program Administrators Association's State of Program Business Study 2015.
This represents an increase of 7.4% from the year previous. In fact, program business is growing more quickly than the overall commercial insurance sector, which increased 1.7%, according to the study. Overall, the number of insurance programs increased slightly to about 2,100 programs and to about 1,000 program administrators.
Among the study’s findings, the number of administrators who reported increases in premiums rose from 52% in 2010 to 82% in 2014. Of those who reported increases, 36% say gross revenuesrose 1% to 10%, a quarter saw increases between 10% and 25%, and 16% say gross revenue increased more than 25%.
The study surveys the size of program business and tracks trends in the market. Since it was started in 2011, the program business has grown from $17.5 billion in commercial insurance revenue in 2010.
The 2015 study documents the responses from 156 program administrator and 52 carriers, and was conducted in tandem with New York-based insurance information company Adivsen Ltd.
Below and on the following pages, the eight most popular markets underwritten in program business:
8. Fidelity, surety and crime - 22.9% of respondents write this line in program business
(Photo: Shutterstock)
7. Workers’ Compensation - 39.6% of respondents write this line in program business
Interestingly, 25% of carrier respondents named Workers’ Compensation as the worst fit for programs. Personal lines and Financial & Political Risk tied as the second-worst fit, with 15% each.
(Photo: Thinkstock)
6. Professional Liability - 46.5% of respondents write this line in program business
(Photo: Shutterstock)
5. Package - 47.2% of respondents write this line in program business
This generally refers to providing both General Liability and Property insurance.
(Photo: Shutterstock)
4. Automobile - 48.6% of respondents write this line in program business
(Photo: Shutterstock)
3. Excess/umbrella - 57.6% of respondents write this line in program business
(Photo: Shutterstock)
2. Property - 61.1% of respondents write this line in program business
1. Liability - 65.3% of respondents write this line in program business
Carrier respondents also named liability as the best fit for programs.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
