Program carriers, who defined their risk appetites for NU recently, also answered the question, why should a program manager choose your company as a partner?
• United National Group:
“If there’s one thing I want people to view us as, it’s as a risk-taking program backer that’s going to look at tough classes,” said Scott Reynolds, who was appointed as president in mid-July.
United National Group, founded in 1960 with a long history in the program segment, is one of four operating divisions of United America Indemnity Ltd. The company had also done brokerage business until six months ago, when the brokerage piece was split off in a separate company known as Diamond State, according to UAI President and Chief Executive Officer Larry Frakes.
Mr. Frakes believes that a unique background which Mr. Reynolds brings to his new position is a distinguishing asset for United National. “I don’t think there’s anyone else who has experience as an actuary and also spent time in a brokerage arena building a sizable volume of program business,” he said, referring to Mr. Reynolds’ prior positions at Royal & Sun Alliance and as president of the specialty underwriting division of AmWINS.
• American Safety Insurance:
In addition to having a segregated cell captive that supports a model centered on true risk participation from the program managers, Vice President of Program Business Brad Isaacson highlighted his company’s long-term participation in the program business arena.
“We were there when not everybody was, and we will be there in the next hard market,” he said, noting that American Safety entered the program business market when many companies exited.
“That’s really the strategy of American Safety—to go into areas of opportunity, areas that are underserved, and programs that at that point had a bad name. Some of our competitors had some issues, and the industry got painted with a very broad brush,” Mr. Isaacson said. “We saw that as an opportunity, and that’s when we got in.”
• Markel Shand:
Markel offers more than capacity and issuing paper to program managers, according to Henry Lopez, vice president of the program division, highlighting the ability to offer marketing services among the factors that sets the insurer apart.
The marketing team can help a program manager with a small book to develop claims examples, prepare for trade shows and put together leaflets, among other things. The association for which coverage is being provided benefits from such efforts because they can help to expand the association’s membership, according to Mr. Lopez. “The program manager and carrier benefit because it means more business,” he said.