Since The Distinguished Programs Group (DPG) started its program management business 15 years ago, the company has aggregated a great deal of information about the risks it has written, but like any good underwriter, DPG never seems to have enough information. “One of the things we're constantly asking ourselves is: Can we figure out what caused the claims–the various bits of exposure information–or can we figure out what things correlate with claims?” says Andy Potash, chairman of DPG.

DPG has a variety of businesses, but what it is most known for is being a program manager. “We're an outsourced underwriting manager–in this case for AIG,” explains Potash. AIG appointed DPG as the program manager for specific segments of its property book of business, particularly multifamily real estate. The program manager underwrites in 48 states through 1,200 retail insurance agents.

DPG also has a reinsurance company under its umbrella, reports Potash. “We take underwriting risks alongside our insurance company partners,” he says. “In the case of the AIG program, we are a reinsurer to AIG for part of the risk. This aligns us with AIG–we're not just getting paid commissions to aggregate risks, underwrite them, and issue policies. We're also taking risks, so if we make a mistake, it's not only painful to [the carrier], it's painful to us.”