Heidi Strommen, executive vice president of ProHost, believes that program administrators like ProHost need to differentiate themselves in the marketplace from the more broad-based wholesale brokers. "Both wholesalers and program administrators are important to the market, but many retail agents don't understand the difference and don't use programs effectively," states Strommen. Most program administrators are niche product-oriented, frequently having exclusive or semi-exclusive products. In order to be successful in the marketplace, Strommen believes that companies like ProHost need to communicate their niche more effectively to the retail agent.

The Target Markets Program Administrators Association is playing a key role in accomplishing that goal, according to Strommen. "Target Markets is unique because it understands the difference between a program administrator and a wholesale broker, and it has helped raise awareness of the program administrator in the market place--both with carriers and retail agents," remarks Strommen. "The Target Markets Association has provided many benefits to our company including educational resources that help us learn to operate our business more effectively. It also provides networking opportunities with other program administrators and carriers writing program business."

ProHost's biggest market niche is restaurants. It continues to expand its product offerings, having recently added a second package carrier to broaden its underwriting capabilities. ProHost has partnered with Great American and United National because of their commitment to the program business and their financial strength. The restaurant programs include customized restaurant coverages and focus on sit-down restaurants, but the carriers have somewhat different underwriting appetites. "The combination of these two carriers allows us to be a market for a broader cross-section of restaurants with table service," comments Strommen.

In addition to restaurant packages, ProHost specializes in workers compensation and offers agents several alternatives. Depending on the state, ProHost may have up to four possible markets for any given account. "Agents who submit their workers comp risks to ProHost will know they are using their marketing time efficiently," notes Strommen. Eligible workers comp classes range from contractors to retail to manufacturing risks. Individual premiums range from $2,000 to over $100,000.