MARKETING
Web site lets independent agents search for
program administrators with needed programs
By Phil Zinkewicz
(From left) TMPAA Executive Vice President Ray Scotto meets with association members Arthur B. Seifert, CPCU, CIC, RPLU, president & CEO, Lighthouse Underwriters; Frances T. Sarmiento, CPCU, AU, underwriting director, Norman Spencer McKernan; Mark R. McCrary, ARM, AIC, vice president-marketing, Professional Underwriters; and Joseph Palumbo, vice president, New Age Brokerage, Inc.
In some ways, the current hard property/casualty insurance market is a boon to program administrators. Frustrated retail agents, who face dwindling market capacity from their insurance companies, are looking to program administrators to make up the difference. However, finding just the right program administrator with a program that matches the retailer's need can be a problem. And, for the program administrator, the problem is how to communicate to the retail agent that the programs exist at all.
One answer might be the Target Markets Program Administrators Association (TMPAA), an association started just two years ago by Glenn Clark, owner and president of Rockwood Programs, an agency that specializes in EPLI insurance. Clark's concept was to create an association dedicated to supporting what he terms "the unique needs" of program specialists. So, in October 2001, Clark organized a "summit" meeting to which he invited other program administrators, insurance carriers and technology vendors. Although the summit's agenda included speeches and workshop discussions on topics of interest to program administrators, the real purpose was to test the waters--to elicit the opinions of participants as to the viability of forming a new association so specifically oriented.
The results of the summit were so positive that TMPAA was born and, in the first year of its existence with Ray Scotto at the helm, the association has steadily grown.
"The first summit offered the opportunity for program administrators to meet carriers, network with each other, attend program-specific workshops and learn about current program business technologies," says Scotto. "As membership grew throughout the year, additional services were added to address the most immediate issues facing program administrators. Chief among these services was the introduction of a Web-based, market-finding protocol for member agencies. This process was designed to bring efficiency to the market-finding process and make the programs of Target Market members stand out during the difficult and crowded program submission process."
According to Scotto, a subsequent summit held in October 2002 attracted more than 250 program business professionals, including 14 carriers with dedicated program business divisions. The association's latest innovation is a commercial vehicle designed to connect independent retail agents with the programs that are available from the association's members. TargetPrograms.com went into operation in January of this year. The concept behind this entity is to funnel retail agents looking for coverage to the Target Programs Web site, using a marketing strategy that includes print, electronic and direct mail media.
Only program administrator members of the Target Markets Association are eligible to participate, says Scotto. "Once a retail agent visits Target Programs, that agent can easily search for coverages or for program administrators that have the product desired," he says. "Agents also have the opportunity to place a specific risk on a 'coverage exchange' if they are not able to locate coverage during their initial search of the database. All Target Markets members will have access to this coverage exchange and the opportunity to provide the coverage the agent seeks."
Scotto says that Target Markets members who choose to participate in this program develop a "mini Web site" or "outlet center" that provides information about their agency and details about the programs they offer. Visiting agents can access a company contact from the outlet center, or go directly to that agency's regular Web site for additional information. "The process is designed to promote a seamless flow of traffic to the member's doorstep," says Scotto. "The association is not financially involved in any of the transactions that occur as a result of the connections made on the Web site."
Both Target Markets and Target Programs Web sites are the products of Insuranceworkz, a Seattle, Washington-based designer of Web sites for insurance entities, including agencies. Jeff Sartin, president of Insuranceworkz, a former insurance agent himself, said that the Web sites are designed to allow professional program administrators to communicate with each other easily and to allow agents to access markets for needed insurance coverage.
"Since our only goal in establishing Target Programs is to drive business to our members, we wanted to make sure that there were no barriers to impede the independent agent from using the Web site," says Scotto. "Thanks to Jeff's expertise, the Web site is extremely user friendly. And, there are absolutely no fees for the independent agent to use Target Programs. Searching for coverage has been made very simple with the use of coverage key words that connect agents to outlet centers with that available coverage."
Another service available to both the program administrator and the visiting agent is the ability of both groups to communicate with each other utilizing the producer search bulletin board function, says Scotto. "Program administrators can search for producers with expertise in the product they sell. Agents interested in other producer opportunities can regularly check this bulletin board for an opportunity that fits their business."
Scotto says that there are currently 70 outlet centers on the Target Programs site with more than 300 different programs represented. "We are happy to provide this for our members, and do it for less than half of what the nearest competitor charges for a similar service. If the initial response to the site is any indication, this will be a tremendous benefit to members," he says.
Target Markets staff believes that they will have 150 outlet centers up and running by the time they hold their third annual summit in October of this year. "We intend to make improvements to the site as we receive feedback from our member agencies and the agents who use the site. We are encouraging all visitors to use the feedback button on the Target Programs home page. We want to see how we are doing and change with the wishes of the population we are serving."
Ray Scotto is executive vice president of Target Markets Program Administrators Association.
Scotto is adamant about the Target Markets mission statement. "Our mission is to help program administrators operate more efficiently, with greater proficiency and profitability." To accomplish this, TMPAA has been organized around five themes:
1. Technology--Helping members sort through the vast number of companies and taking maximum advantage of technology to further their enterprise's interests.
2. Skills--Helping members gain new skills or enhance existing ones through workshops, consulting with experts and providing education
/training on relevant industry topics.
3. Meeting the markets--Aligning with selected carriers that either specialize in programs or have special units with a program focus.
4. Networking--Helping each other grow by tapping into the collective expertise of all. Decision-level owners and program managers sharing their areas of expertise strengthen the group.
5. Cross-sell--Allowing for members to meet with other members to add a new product or to market their own products through selected member/partners. This is an opportunity for those that wish to use contacts obtained in the association to expand their marketing network.
Says Scotto: "We have created a business plan to align only with specialists in program business to advance the interests of our specialist carrier and vendor partners within the association. Our goal is to provide more efficient access to decision makers in programs. To further pursue the association's mission, we have developed a strategic alliance with Benfield Blanch, the largest independent reinsurance intermediary in the world. Benfield Blanch Program Solutions is the domestic U.S. entity within Benfield Blanch, focusing on program business. The reinsurer is assisting with market contacts, program placement, reinsurance support, risk transfer, auditing and actuarial services. Our association will continue to develop new and innovative solutions to the challenges facing program administrators."
Members of the Target Markets Program Administration Association are extremely enthusiastic about the group's work to date. Arthur Seifert of the Virginia-based Lighthouse Underwriters, LLC, says the association provides program administrators with the opportunity to meet with national carriers that are involved in a big way in program business. His agency's programs include assisted living and skill care, audiovisual rental, machine tool distributor, and directors and officers liability coverage for professionals. "Not only is it important to meet with national carriers, but it is also important to meet with other program administrators to exchange information so that we can learn from each other. Independent agents benefit because they can access program administrators more efficiently and the more program administrators are organized, the more consistent they will become in dealing with agents' problems."
The Norman Spencer McKernan (NSM) agency, based in Conshohocken, Pennsylvania, offers five programs: ambulance, home builders, generic workers compensation, temporary staffing and social services. Fran Sarmiento of NSM says that TMPAA is valuable to program administrators because it is smaller than other associations and because it is focused on issues related specifically to program administrators. "At the annual meetings, the interaction and networking with insurance companies and other program administrators are extremely valuable to us," she says. "We can find out what carriers are interested in in terms of program business. What are their niches and appetites? And, the vendors are important as well in that they can learn what program administrators need in terms of technology."
Mark McCrary of the Pennsylvania-based Professional Underwriters says that TMPAA as an association is beneficial to both program administrators and retail agents, although only program administrators are members. His agency has two main programs, one for community works projects in municipalities and public entities and another for public and private schools. "From the retail agents' standpoint, it gives them another Web site source of information, through Target Programs, where they can easily identify markets they're not aware of. All they have to do is type in a word describing a line of business and we can interact with them. From the program administrators' point of view, the association affords the opportunity to meet with others in our business, including the carriers that are dedicated to program accounts." *
For more information:
Target Markets Program Administrators Association
Web Site: www.TargetMarkets.com