CIC Insurance Brokers, Inc.
"The Target Markets Association is still very young, but even in the short time it has been in existence it has become a valuable source of information for program administrators and company markets that are committed to writing program business," says C.T. Kelly, president of the Abilene, Texas-based CIC Insurance Brokers, Inc. "We were one of the first agencies to join the association because we recognized the potential that existed for networking among program business professionals. That potential is certainly being realized."

Kelly would like to see Target Markets go even further in the coming year. "I would like to see the committee motivate members to share programs among themselves," he says, although he admits that this might be better for some members than others.

CIC Insurance was established in 1976. "Our purpose was then and is now to develop and market innovative programs through independent insurance agents and brokers to clients with particular needs," Kelly says. "We target specialized groups or industries. And we are a program administrator specializing in very specific programs, not a general business wholesaler."

CIC's area of specialization is the staffing industry throughout the United States. That includes temporary employees--those employed on an hourly basis--and employee leasing arrangements. The agency's package of coverages for the staffing industry includes property, general liability, employee dishonesty bonds, and errors and omissions. CIC also writes excess and umbrella coverages for the staffing industry as well as employment practices liability and workers compensation.

"For the most part, we have not seen the drastic tight market that everyone is talking about," says Kelly. "We did not see the huge increases that the rest of the industry has experienced. The prices on our package coverage are still pretty much what they were 10 years ago. Some of our exposures saw a reduction in the credit portion of the premium, but not rate increases."

Workers comp for the staffing industry, Kelly says, is another story. "In California, you can't get workers compensation coverage at all. In other parts of the country, insurers are asking a million dollars in minimum premium before they'll look at a risk. Only AIG recently came down to $100,000 in minimum premium. The reason for the difficulty in workers compensation for the staffing industry is that many insurers view this line as one in which it is difficult to control losses. Consequently, most of the staffing industry has had to resort to state funds to obtain the workers comp coverages they need."

Getting back to Target Markets members exchanging programs, Kelly envisions a scenario that might work this way: CIC is a program administrator for the staffing industry. Another member might have a program for horses. By posting their programs on the Target Market Web site, members might see an advantage to sharing portions of each exposure, each receiving a small percentage of the other's commissions. "As I say, this approach might not be right for all members, but I believe it bears discussion," Kelly says.

And, he adds, that's one of the things Target Markets is all about. "Target Markets is about providing much needed information to its members, specifically about program business. It is also about networking, and networking means the sharing of ideas for the purpose of open discussion. There is no question that Target Markets, despite its youth, is moving closer to reaching its goals." *

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