As Demand Within Alternative Markets Increases, TPAs Serve an Important Role
White Paper Summary
In recent years, programs, captives and other alternative risk transfer solutions have been having a bit of a moment. As markets harden, insureds are looking for innovative solutions to help financially manage their exposures.
The space has become so active, it’s growing faster than the traditional property and casualty market “I think you could make the argument that the program space is about as active a space in the property casualty industry as you can find,” said Ken Hawkins, director, business development, alternative markets and programs at Broadspire.
“We’ve actually seen increased capacity in the space in terms of markets that are wanting to provide funding to build products.”
Over the past few years, Hawkins says he’s seen the programs market grow to between $65 billion and $70 billion in written premiums from a combination of carriers, managing general agents, managing general underwriters and risk retention groups.
Captives, too, are becoming more popular, especially for lines like property, cyber and medical malpractice where it has become difficult to place coverage in traditional markets. “When coverage gets to the point where it’s hard to get, people start moving towards captives,” Hawkins said.
As demand for programs, captives and alternative risk transfer solutions grows, so too has the need for third-party administrative (TPA) services that help support claims and improve financial performance using data analytics.
“With more people coming into the space, and more people writing business in the space, that means there’s more claims to be handled, which creates more opportunity for firms like us,” Hawkins said.
To learn more about Broadspire, please visit their website.