"As markets shift, and the current market is not different, program business is often viewed more unfavorably than other business," according to Terri Clark, vice president and director of marketing for AIG Programs. "In order for programs to be sustainable through market shifts, we have found it important to stick to a few key characteristics."

Clark says that AIG Programs looks for programs that serve customer groups that are under-represented in the standard markets. "We look for programs that have a credible premium volume so that a profitable rate level can be determined. We stick to industries and classes where our company's expertise is found in most disciplines including underwriting, marketing, claims, loss control. One of the most important ingredients is that we look for brokers who also have proven expertise in most of the same disciplines."

According to Clark, AIG is a charter member of the Target Markets Program Administrators Association. "We are proud to serve as the company representative on the advisory board. This is a unique association that serves the needs of program administrators. There are a number of associations that serve the wholesale community, but not the unique needs of program administrators. Program administrators are primarily differentiated by their singular focus on an industry group or product line. They act as the carrier in terms of many of their service functions. Even when a broker has multiple programs, they are underwritten and managed in a separate and distinct fashion.

"We see a number of benefits from our involvement in this association," continues Clark. "In the most basic terms, it allows carriers and program administrators to meet and discuss opportunities. Those that are experienced in this business have a unique understanding of the long-term thinking required to be successful. Programs are not built in a day and must be sustainable over a number of years to be profitable for all involved."

Finally, says Clark, the Association also "allows us to showcase our strengths in the program arena and to further our strategies and business objectives. Our strengths come from our understanding of the business model, the extensive expertise of our staff and the capacity and creativity that is the hallmark of AIG. As a member of the advisory board we have a voice that allows us to utilize these strengths in a larger way to positively influence how program administrators are viewed," says Clark. *