Looking Forward
Program administrators are entrepreneurial and independent operators. Little surprise that they’re optimists.
Industries are reinventing themselves, there’s going to be a dislocation. They’re going to create opportunities.
Richard Augustyn, NIP Group
Despite a challenging economy and business uncertainty, program administrators believe the winds of change are blowing their way. Richard Augustyn points to economic, legal and regulatory dislocations as drivers for the emergence of new coverage opportunities.
If someone is considering launching an insurance program, don’t procrastinate until the economy strengthens, Geoffrey McKernan cautions. “As the Allstate commercial says, it was founded in the Depression. We started a couple of new programs this year that are doing very well. You have to look for those opportunities where nobody else is looking.”
Glenn Clark believes program administrators are entrepreneurs and thus inherent optimists. Otherwise, they couldn’t bear the risks and uncertainties of starting new businesses. “If you were to profi le the heads of all the program administrators that come to our group, they probably made 10 mistakes for every success they have,” Clark said. “But they can tell you about those successes. The key is to make a lot of little mistakes and really ramp up on those successes.”
Programs ultimately succeed over many years, meaning they should be built to outlast individual market cycles, Vincent Pugliese said. “We think this is a robust industry. Market cycles will always come and go. It’s how you manage through them and how you prepare for the future.”
This white paper is based on a recently held webinar. To view a replay of this event, visit
http://www.bestreview.com/webinars/program10. Copyright 2010 A.M. Best Company.
Copyright © 2010 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.
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