New York, February 29, 2012 – Specialty program insurance providers predict that the Program Administrators and Managing General Agents (PA/MGA) market will grow in 2012 as a result of changes taking place in program business, according to a survey conducted by Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a member of Marsh & McLennan Companies (NYSE: MMC). In its annual study of the PA/MGA marketplace, Guy Carpenter surveyed both traditional insurance companies with specialty program operations and specialty insurance carriers about their program business and the direction of the PA/MGA marketplace.
Now in its seventh year, the study found that while the majority of respondents perceive the PA/MGA marketplace today to be smaller than it has been in previous years, many (51 percent) see it growing in 2012. Overall survey results suggest that the willingness of program carriers to adopt a more flexible approach to building the business will become a key driver of growth. Survey respondents report that they are now considering smaller programs, larger territorial scope and start-up programs as well as fronting opportunities in order to grow, or at least to maintain, a reasonable market share.
Poised for Growth: Guy Carpenter’s Seventh Annual Specialty Insurance Program Issuing Carrier Survey, available for download at www.GCCapitalIdeas.com, provides an in-depth analysis of the survey findings. The report includes a summary of market size, dynamics and key challenges, as well as insights into program demands and preferences, operating platform structure, performance management, reinsurance purchasing and growth plans.
John Trace, Executive Vice President � GCFac®, Guy Carpenter & Company, LLC
“As program administrators and managing general agents continue pushing hard to grow their business against the backdrop of smaller programs and premiums and a struggling economy, their carrier partners appear ready to collaborate in finding ways to achieve mutual revenue growth and profitability. Hopefully, the results of this year’s survey shed light on where program carriers see the best opportunities.”
About Guy Carpenter
Guy Carpenter & Company, LLC is a global leader in providing risk and reinsurance intermediary services. With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and delivers capital market solutions* for clients across the globe. The firm’s full breadth of services includes line-of-business expertise in agriculture; aviation; casualty clash; construction and engineering; excess and umbrella; life, accident and health; marine and energy; medical professional liability; political risk and trade credit; professional liability; property; retrocessional reinsurance; surety; terrorism and workers compensation. GC Fac® is Guy Carpenter’s dedicated global facultative reinsurance unit that provides placement strategies, timely market access and centralized management of facultative reinsurance solutions. In addition, GC Analytics® utilizes industry-leading quantitative skills and modeling tools that optimize the reinsurance decision-making process and help make the firm’s clients more successful. For more information, visit www.guycarp.com.
Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Mercer, a global leader in human resource consulting and related services; and Oliver Wyman, a global leader in management consulting. Follow Guy Carpenter on Twitter @GuyCarpenter.