Gauging the Competition


Even a strong idea may not take a program far if it’s facing entrenched competition with superior resources.


Talk to your agents you’re currently working with, your brokers you’re currently working with to fi nd out their opinions whether that particular carrier or program fully satisfi es the needs of their clients.


Richard Augustyn, NIP Group


Program administrators can’t challenge competitors until they determine who those competitors are and what market position they hold. Sometimes there may be little or no competition in a particular sector, and other times competition may be present, but weak. Rich Augustyn advocates a multi-pronged approach to assessing competition, including:


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Researching carriers that may be offering this type of coverage; Reviewing online and print directories to learn which insurance carriers, MGAs or program writers are active in the sector or region; and


Purchasing industry data to determine premium and claims activity for a particular sector.


Gauging whether a competitor is ripe for challenge is an ongoing process. Would-be program administrators should be prepared to revisit assumptions. “The key part of a program is it’s always evolving,” Richard Augustyn said. Research on the market sector and on competitors should be reviewed regularly to identify new sources or competition or unveil new opportunities.


Would-be program administrators should be prepared to revisit assumptions. “The key part of a program is it’s always evolving,” Augustyn said. Research on the market sector and on competitors


should be reviewed regularly to identify new sources or competition or unveil new opportunities.


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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