While wholesale agents, brokers and carriers depend on a numberof well-regarded excess and surplus lines associations to helpdevelop business and protect their interests, individualsspecifically devoted to the wholesale program sector are deeplyinvolved in a relatively new group specifically designed for theirniche in the industry.

“There was no organization that spoke to program specialists,”according to Ray Scotto, executive director of Wilmington,Del.-based Target Markets Program Administrators Association(www.targetmkts.com), which has been around for about sixyears.

As Mr. Scotto tells it, after spending a couple of years workingon the idea, Glenn W. Clark, president of Rockwood Program Inc.–aprogram administrator based in Wilmington–set up a meeting forother administrators and carriers with the idea of forming anassociation.

The purpose of the first Target Markets Program AdministratorsAssociation meeting was to see if there was enough interest inbuilding an organization just for program business wholesalers.

That inaugural meeting, held in Tempe, Ariz., took place a monthafter Sept. 11, said Mr. Scotto, with 150 people showing up.

“There were a lot of no-shows,” said Gregg Thompson, theassociation's president as well as chairman and chief executiveofficer of Kennesaw, Ga.-based Thomco Insurance, a national programadministrator primarily for day care centers.

However, those specialists who did make it to that initialgathering “felt they did not have the opportunity to connect withthe decision-makers, and companies felt they were not getting theopportunity to do the business they wanted to do,” according to Mr.Scotto.

“Other groups deal with large, diversified programs,” he added.“Our group specializes.”

Mr. Scotto was hired shortly after that meeting from the publicservice sector, and the building of the new organization began.

As the organization approaches its seventh anniversarymeeting–to be held Oct. 15-17 in Tempe–he said the association nowboasts 180 program administrators, 40 carrier program-specificdivisions, and 50 vendors providing technology, third-partyadministration, attorneys and other support for thewholesalers.

Among the meeting's benefits (there are currently two annually)are intensive working sessions between administrators and carrierslooking to do business together. There are continuing educationclasses offered, and even the golf tournament is primed forbusiness development, with pairings made between brokers andunderwriters.

“If you make the investment to come to our meeting, we want youto feel it was worthwhile for your business,” said Mr. Scotto.

“Target Markets is geared to us and our issues,” according toMr. Thompson. “The interaction with other program administrators isinvaluable.”

Robert E. Mackoul, chief executive officer of Mackoul &Associates Inc., based in Long Beach, N.Y., with offices in NewYork City, calls Target Markets meetings something similar to speeddating, because one is always moving and meeting with carriers andothers in continuous business discussions.

A retail agency that specializes in co-operatives andcondominiums in the metro-New York area, he found he neededcommercial umbrella and oil storage tank coverage for his risks,and thus began the managing general agency New Empire Group tosatisfy that need.

Eventually, he was told to grow the business or lose theappointment.

What started as a small operation is now a true wholesaleprogram business in 35 states, he said, overseen by Robert G.Mackoul, vice president of Mackoul and Associates.

“We are the small guy on the block,” said the CEO. “We are notin the big league. But I don't think we would have been able tomeet the people we have met that have lead to the numbers we have,and to our continued growth. We would not be where we are withoutthem.”

Chris Gallagher, executive vice president of New York-basedHudson Insurance Group–a program underwriter and member of OdysseyRe–called Target Markets “an excellent organization” offering lotsof opportunities to meet “with quality program administrators,”saving time because executives avoid dealing with unrelatedbusiness segments.

“TMPAA provides tremendous value to Fireman's Fund Specialty,”said Jack Russell, executive director and U.S. leader of specialtyprograms for Fireman's Fund, in an e-mail. “The association is aconduit for program administrators and program carriers to meet,interact and exchange ideas and best practices for growth andprofit. We appreciate TMPAA's leadership in our industry.”

While meetings are an important function, Target Marketsprovides much more, Mr. Scotto pointed out.

The association has developed best practices designations toidentify what makes a successful wholesale program brokerage andidentify who meets and exceeds the grade. The survey anddesignation was put together by the brokers and carriers. Thethree-year-old designation has been awarded to six firms sofar.

There is also Target Programs (www.targetprograms.com), whereretail agents can find members offering markets, while members getto market their offerings to producers.

Not just anyone can be a member, however, Mr. Scotto explained.Members must have program binding and underwriting authority and $1million in revenue a year. Members must also be actively involvedin the association, serving on boards and committees. “We all havea stake in running this,” he said.

But the biggest benefit for the members is just being able tospeak to one another. “You save a lot of time not having torecreate the mistake others have made,” noted Mr. Scotto.

“We have grown unbelievably and we are proud of our success,”said the association's president, Mr. Thompson. “We fill a voidthat was desperately needed for our unique business models. We arevery excited about the future, and encouraged, becausespecialization is growing in this industry.”