A comprehensive program submission includes these parts: Executive Summary, Distribution, Underwriting, Claims Experience, Program Experience, Actuarial Information, Agency Profile and Competitive Market Intelligence.

The following checklist from Meadowbrook's Phillip Gajewski gives guidance about what to put under each heading. In an accompanying article, part 1 of a five-part educational series titled “Program Business—From Submission To Finish Line,” Gajewski's discusses some of these items in detail.

Executive Summary

a. Program overview, to include:

Industry served
Market size
Lines of Business (LOBs)
Years in existence
Current volume
Association endorsements, if any
Carrier history
Concentration by state
Loss ratio
Expertise/experience in class of business
Issues unique to industry

b. Reasons for seeking new carrier/market

c. Target start date and reason for date

d. Plans for growth and geographic expansion

e. Type of paper needed (admitted or non-admitted)

f. Special circumstances attributable to program's success

Distribution

a. Program marketing

b. Direct versus subproduced business

c. Agency relationship(s)—MGA, GA, retail agents, wholesalers, etc.

d. Agency responsibilities

e. Geographic breakdown of existing book

Underwriting

a. Class of business

b. Average account size

c. Lines of business, classifications, rating codes

d. Ineligible risks

e. General eligibility guidelines

f. Eligibility by line of business

g. Policy form information (ISO/manuscript)

h. List of forms, endorsements and application

i. Primary limits by LOB

j. Legal environment of each state

k. Rates

Claims Experience

a. Claims-handling history (TPAs, carrier staff, vendors, etc.)

b. Loss runs by line (five years currently-valued hard copy)

c. Claim information (paid losses, number of claims, reserves, etc.)

d. Summary of large losses

Program Experience

a. Total written premium (annualized basis and inception-to-date)

b. Premium history by line by year

c. Policy count by year

d. Hit ratio and renewal retention ratios

e. Exposure history

f. Rate and pricing change history

g. Loss ratio (pure and ultimate)

h. Premium projections

Actuarial Information

a. Recent actuarial evaluations, by line, state and year

b. Paid and incurred loss triangles by LOB

c. Reported claim triangles by LOB

d. Loss drivers

Agency Profile

a. Principals

b. Type of agency

c. Incorporation date

d. Existing business composition

e. Agency management and/or processing systems

f. Level of desired risk-sharing participation, if any

g. Current audited financial statements

h. Staff, to include:

Overall experience
Key person résumés
Organizational charts

i. Financial Information, to include:

Program historical performance
Program pro-forma statements

j. Miscellaneous, to include:

Loss control programs
Reinsurance profile/history
Premium audit/finance
Payment plan details, if any

Competitive Market Intelligence

a. The current and future marketplace

b. Analysis of competitors, including competitive products and programs, their sizes, strengths and weaknesses, as well profiles of competing agencies

c. Applicable market research, to include:

Relevant statistical data
Regulatory issues
Coverage available
Industry needs
Distribution patterns and potential

Special Reports /

Is Your Program Submission Complete?

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