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Landscaping Firm Implements Drug Testing
LANDSCAPING FIRM IMPLEMENTS DRUG TESTING WORKING PARTNERS Architectural Landscaping, Inc., in Tucson, Arizona, creates...fficult to document, Architectural Landscaping feels its program ensures safe ...

... too inefficient. And down come the prices even further. NICHES AND SPECIAL PROGRAMS Although alternative risk financing is considered new and creative, producing niche business is anything but. The only thing new is that niches are now called ' crevices' by some-perhaps to connote deep knowledge in a narrow field. But old hat or not, program business is likely to remain an important part of the Commercial Lines landscape. Commercial Lines insurance sales is a competitive business, to say the least, and the most active producers, veterans, and rookies find the need to do more than write their community. Specialization gives them more focus and the opportunity for better closing ratios. Thus, programs have been developed for virtually every conceivable trade group and class of business. And some prominent national carriers have made program business ... in the last decade or so, we usually come up with organizations in Excess & Surplus lines; or if standard lines are involved, they're usually for a specialized class. But this need not be. The P/C industry has a history of active and prominent MGAs in mainstream standard markets, many on the West Coast in the middle part of this century. Essentially, MGAs were a vehicle that solved the problem of carriers wanting to participate in the growing population and income in that region without the cost and time delays associated with putting up brick and mortar. Although today is a different era, we have a similar set of economic circumstances-the need to market and a cost constraint. Some of the MGA stories did not have happy endings, especially for the carriers involved. In those ...

... too inefficient. And down come the prices even further. NICHES AND SPECIAL PROGRAMS Although alternative risk financing is considered new and creative, producing niche business is anything but. The only thing new is that niches are now called ' crevices' by some-perhaps to connote deep knowledge in a narrow field. But old hat or not, program business is likely to remain an important part of the Commercial Lines landscape. Commercial Lines insurance sales is a competitive business, to say the least, and the most active producers, veterans, and rookies find the need to do more than write their community. Specialization gives them more focus and the opportunity for better closing ratios. Thus, programs have been developed for virtually every conceivable trade group and class of business. And some prominent national carriers have made program business ... in the last decade or so, we usually come up with organizations in Excess & Surplus lines; or if standard lines are involved, they're usually for a specialized class. But this need not be. The P/C industry has a history of active and prominent MGAs in mainstream standard markets, many on the West Coast in the middle part of this century. Essentially, MGAs were a vehicle that solved the problem of carriers wanting to participate in the growing population and income in that region without the cost and time delays associated with putting up brick and mortar. Although today is a different era, we have a similar set of economic circumstances-the need to market and a cost constraint. Some of the MGA stories did not have happy endings, especially for the carriers involved. In those ...

... attitude that small accounts are a waste of time will change as technology becomes more sophisticated. Do your homework Before you find a market, the first step is to assess the potential of a specialty program. I cannot stress enough the importance of market research. Start by finding out how many insureds fit your niche program. How many tow truck operators do business in Arizona? What's the number of landscapers working in California? How many nonstandard auto drivers are there in Washington? How many accountants are there in California who need Professional Liability insurance? What about the number of new-car franchised auto dealers compared with the number of used-car auto dealers? The next questions you should ask: How much effort will go into putting the program together? What are your expectations for it? How much will it ... public, but be warned: Merely duplicating another carrier's product by no means guarantees a profitable program. Q. What is the program's main point of differentiation? A. You need to outline how your product differs from others on the market. For example, when I was working on a purchasing group for owner-operator delivery trucks, we established that truck owners are more conscientious than non-owners when driving their vehicles, so this type of risk deserves a lower rate than that in the rating manuals. On this simple basis, the purchasing group had successful underwriting results. What sets your niche program apart? Perhaps you want to write the General Liability for start-up artisan contractors, whereas other companies avoid start-ups altogether. Another important feature of a specialty program could be the billing plan or the amount of the ...