We’re seeing carriers and MGAs looking to technology as a way to differentiate themselves and move faster on program opportunities.
November 17, 2017
Instec, a market leader in the delivery of software solutions for commercial program insurance and specialty writers, continues to see strong growth in program business. As evidence, more than half of Instec customers are deploying new programs on the Instec Policy system to expand their footprint in chosen markets.
“We’re not really surprised by this trend,” said Kevin Mason, Executive Vice President at Instec. “We’ve been seeing more and more carriers turn to programs as a safe haven in a persistently soft P&C market.”
The latest TMPAA State of the Program Business Study found that program business premiums grew 5.3% in 2016, more than four times the overall market’s growth. The success of program business can be attributed in large part to the Managing General Agents’ (MGAs) intimate knowledge of the markets they serve. The MGA’s credibility builds stronger customer loyalty, and drives higher renewal rates – 85%, on average, according to the study.
“The attractiveness of program business is creating interest among carriers looking for growth, and this is driving greater competition among both carriers and MGAs,” said Mason. “We’re seeing carriers and MGAs looking to technology as a way to differentiate themselves and move faster on program opportunities.”
Many carriers that embarked on large-scale legacy replacement projects have found their systems are not agile enough to keep pace with emerging program opportunities, while many MGAs are bringing systems in house to gain direct ownership of their data, and control their destiny…