Carriers May Be Unprepared to Capitalize on the Growth Opportunities of Program Business

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Program insurance has become a “top five” strategic imperative for most carriers, but a new Instec white paper suggests that many underestimate the challenges of moving to this fundamentally different business model.

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The carriers that succeed with programs are those flexible enough to quickly configure a program, and the system that supports it.

A new publication released by Digital Insurance describes the phenomenal growth of program insurance, with revenues doubling over the past six years. This stellar performance in an otherwise soft market has attracted carriers hungry for growth, but the author cautions that success with programs requires major preparation.

The white paper, sponsored by Instec, a leading provider of systems for program and specialty writers, is titled 3 Reasons to Avoid the Program Business. It explains that merely latching on to this thriving segment of the market is no guarantee that carriers will grow a profitable book of business.

The paper describes three core requirements that carriers should consider before committing to programs: a massive culture shift, new cost management strategies, and a new approach to technology.

’We’ve had particular success with carriers and MGAs in the program space, because we understand the nuances of that business,” said Kevin Mason, Executive Vice President at Instec. “Programs are attractive to commercial insurance buyers because they precisely address the specific risk profiles of their businesses. The carriers that succeed with programs are those flexible enough to quickly configure a program, and the system that supports it.”

The publication expands on the three core requirements, and explains the specific changes in culture, costs, and systems that carriers need to make to succeed with programs. There are many reasons to invest in program business, the author proposes, and for those prepared to adapt, it promises healthy returns.

The white paper is available now, and can be downloaded from the Digital Insurance website.

About Instec

Instec’s unique approach to systems for the insurance industry enables P&C carriers, MGAs and MGUs to launch programs and specialty offerings from start to first quote in as little as four weeks. With built-in bureau content and reusable business rules, Instec systems provide a platform for innovation with reduced risk. In addition, cloud-based deployment and subscription-based pricing enable insurers to test new programs at a low cost of entry and scale up affordably as the business grows. To learn more, visit

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Michael Sauber
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