Turning Challenges
Into Opportunities Key factors supporting SPARTA’s success to date are an intense focus on listening to customers’ needs and possessing the expertise and infrastructure to execute customized solutions.
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PARTA Insurance executive vice president Brian First is not shy about pointing out that the company name is an acro- nym for Specialty Program And Risk Transfer Alternatives. This, he notes, is important as the entire business enterprise
is built around meeting the unique needs of commercial specialty and captive programs.Best Review wanted to find out more. BEST’S REVIEW: Could you give us a brief overview of SPARTA? FIRST: SPARTA was formed three years ago with significant pri-
vate equity funding of nearly $300 million. The company vision and mission is to be the premier provider of unbundled alternative risk transfer and specialty program solutions for program administrators and commercial insureds. SPARTA Insurance Co. is admitted in all 50 states and is rated A- by A.M. Best. BR: How has SPARTA been able to execute its strategy relative to
profitably growing in a market that is down overall? FIRST: In three years, SPARTA has implemented over 30 pro-
grams, averaging around $7 million in premium each. We understand that properly supporting these programs means dedicating an immense amount of product, underwriting, actuarial, systems, claims, marketing and operations support. BR: Can you provide some specific examples of reasons why
a captive or specialty program customer has made the switch to SPARTA? FIRST: We see a lot of issues related to “channel conflict,” lack of
execution, and inflexibility on the carrier’s part. Some of our pro- grams became victims of their own success when their prior carriers saw their profitable results and decided to open up the distribution network and compete against the incumbent program administra- tor. Lacking the knowledge and discipline of the originator, these programs quickly lose their edge. At SPARTA, we do our best to avoid these type of channel conflicts. BR: What types of captive programs does SPARTA support? FIRST: We have a fairly broad underwriting appetite, typically
focused on the more predictable, frequency driven claims exposures vs. severity classes. Our captive programs are typically homogeneous, industry-specific programs where there is an ability to differentiate the program with underwriting, risk management and claims exper- tise. We have captive programs for hardware and building materials dealers, arborists, food growers and distributors, commercial trade contractors and transportation risks, to name a few. Our collabora- tive, unbundled approach allows us to deliver exceptional program results even in a highly competitive insurance environment. BR: What do you think of the potential for continued growth in
the captive and specialty program market? FIRST: At SPARTA, we continue to see a very strong pipeline of
opportunities. This includes the ultimate compliment of receiving additional programs from our existing customer base on the basis of our performance to date.
BR Click here to isten to the full interview Best’s Review August 2010
Brian First,
Executive Vice President and Chief Marketing Officer
On SPARTA’s commit- ment to programs:
“ We have
literally made thousands of filings countrywide to support our various programs and provide our customers a ‘franchise value’ with SPARTA that they will not receive elsewhere.
”
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