PROGRAM ADMINISTRATION

We are experienced insurance consultants and actuaries with a strong understanding of program administrators and the work that they do. Our consultants have worked with more than 30 managing general agencies (MGAs), managing general underwriters (MGUs), and fronting companies.  We have assisted these types of clients with:

  • Program Development (rate, rules, forms)
  • Competitive Analyses
  • Regulatory Correspondence
  • Rate Filing Support

We also help facilitate introductions to fronting carriers, reinsurers, insurtech solution providers, policy administration companies, third party administrators, audit support providers, and additional experts that are important to the successful implementation and operation of insurance programs.

In addition, our understanding of program business is enhanced by our experience performing due diligence and other transaction advisory work related to MGA operations as well as our frequent examination of MGA/MGU agreements in the course of our work on behalf of state insurance regulators.

Program Development Services — The current wave of new technology being applied to the insurance marketplace has led to a rise in the number of new MGA/MGU formations as well as new programs being developed by existing organizations. Our consultants provide the following program development services:

  • Making recommendations related to excess insurance/reinsurance structures, limits, retentions and coinsurance percentages.
  • Conducting feasibility studies that project the historical claims costs for the parent and comparing the projections to benchmark rates charged in the competitive market.
  • Providing actuarial support of rates.
  • Communicating with regulators on behalf of our clients to progress client’s goals.
  • Providing oversight and management involving the implementation of insurance administration systems.
  • Ongoing monitoring of legislative, regulatory, and market activity to provide management our insights and recommendations of appropriate responses.
  • Providing pro Forma assistance:
    • Analysis of expected loss and underwriting expense ratios.
    • Projections of future loss reserve and unearned premium reserve balances.
    • Feedback on reasonable variance around future ratios.
    • Incorporation of reinsurance expenses and transactions for excess of loss (per risk and catastrophe) and quota share.
    • Projection of cash flows related to underwriting and reserve payout.
    • Analysis of capital requirements under RBC and other economic capital calculations.

Program Submission Services — We also assist with the preparation of program packages to be submitted to current and prospective carriers. Whether you are an MGA/MGU with existing programs and are searching for new carriers or a new MGA/MGU with new programs in need of a carrier, we provide the actuarial “backbone” to the submission package.  We also assist in communicating with carriers, addressing the questions and concerns that arise as the carrier scrutinizes the program.