A new study published by the Target Markets Program Administrators Association (TMPAA) found that program business continued to post favorable results last year.
TMPAA’s The 2019 State of Program Business Study – the seventh in an ongoing annual series of reports – found that program business premium jumped by 12.18% to $40.5 billion in 2018 – a considerable increase from $36 billion in 2016. The study also observed that program business continued to outpace the total P&C industry, which grew commercial lines premiums by only 9.97% in 2018.
“Since launching the study in 2011, we have tracked program business’s phenomenal expansion, including premium growth, which is a key measure of success. The data we collected from this year’s survey shows that program business continued to be a growing and vibrant market in 2018,” commented TMPAA executive director Ray Scotto.
Scotto also mentioned that many of the administrators who participated in the poll reported business growth and expressed “great optimism” for the future of the program space.
The study found that there has been a dramatic increase in the involvement of administrators with different forms of insurance technology. Responses from administrators revealed that some of them are up-to-date in terms of insurtech and are even harnessing new technologies, to be used in various areas of the business. An analysis also noted that administrators are more willing to develop their own technologies compared to carriers, who tend to rely on third party companies for insurtech.
“The program administrators are figuring out how to utilize insurtech,” said TMPAA president and Maritime Program Group president Christopher Pesce. “The idea of insurtech is no longer an abstract concept for a program administrator, it’s now a necessity, and we fully expect to see the adoption rate of new technologies expand exponentially. It’s the evolution that we all forecasted.”
For this year, 194 program administrators participated in the survey, as well as 61 carriers. The study was conducted by Advisen.
