Programs, Schemes & Niches


We work with brokers to help them.

 

What insurance coverage, protection and products do your existing and potential clients need?


TRM is a true Managing General Specialty Underwriter and not a market to compete with your contracted standard P&C insurers.
We provide a market for Insurance Risks, Insurance Programs, Insurance Schemes and Insurance Niches. These will provide added value benefits for your clients and provide them with what they want, not what we think they want.
Contact us if your present standard contracted markets cannot support you and provide the coverage, capacity or creativity you require for a particular risk, program, niche or scheme. We have many years of experience assisting brokers and insurers in developing Insurance products well-known throughout the industry today.

 

Definitions


Insurance Risk:

As you know, an insurance risk refers to a threat or peril that an insurance company agrees to cover in its policy. These risks have the potential to cause financial loss, such as property damage or bodily injury


Insurance Program:

An insurance program refers to a joint series of policies through which various insurance carriers provide coverage to a company and its affiliates.


Insurance Scheme:

An insurance scheme is a policy(ies) in which an insurer provides protection or reimbursement against specific risks or perils. Policyholders pay premiums and the insurance company pools these risks to make payments more affordable for the insured.

The Scheme will be recognized as having limited competition, lower than normal exposure and / or coverage options within the industry.


Insurance Niche:

A "niche", in insurance as elsewhere, is a part or segment of the total market, usually a small part. It is a part with some consistency, some harmony within it. The members of the niche population can be described in terms of characteristics such as being farmers or members of an auto club.

How TRM supports brokers?


TRM will work with Brokers to help them:

  • Plug into the advantages of add-on coverages and embedding additional coverage into existing policies
  • Offer products that appeal to distinct groups of consumers that are
    • Product savvy
    • Technologically / digitally savvy
    • Consumer savvy
  • Develop Insurance Programs, Schemes and Niches for various sectors

Programs / Schemes / Niches Guidelines & Questions


Concept of the Program, System or Niche:


  • What is the intent of the Program Scheme or Niche
  • Is there a Business / Strategic / Tactical marketing plan
  • Is there a need
  • How will it benefit the consumer
  • Is there competition and what effect will any competition have on the Program Scheme or Niche
  • How the program/product differs from others, why is it different, and why will it sell

Underwriting:

  • Underwriting expertise and adequate pricing of unique exposures form the core of a successful speciality Program Scheme or Niche
  • What experience has the Broker / Producer got in the fundamentals of the Program Scheme or Niche?
  • Do we understand the insurance wordings for the and its special needs?
  • Has the broker the expertise to understand and underwrite the Program Scheme or Niche
  • Have we the expertise to understand and underwrite the Program Scheme or Niche
  • Is the Program Scheme or Niche needed because of extreme risk activity
  • These programs work better for the carrier with speciality Programs, Schemes or Niches with lower claims exposure and not ones subject to severity.
  • Is the program being developed to fill gaps in coverage in standard policies?
  • Is it being developed because of a specialised or unique coverage need?

Pricing:

  • Are there recommended rates
  • Do we understand the pricing

Premium Projections:

  • The Program, Scheme or Niche should develop significant premium volume and a viable retention rate
  • The broker usually wants higher than standard commission rates citing higher administration and operational costs, the expense ratio usually comes to more than 40% of the premium written.
  • What is the first, third and fifth-year premium projection
  • Has the program “legs” – Longevity
  • Is the premium volume substantial enough to support the Program, Scheme or Niche

Administration:

  • Is there an implementation plan and how is the product to be serviced
  • Has Broker the infrastructure and expertise to administer the Program, Scheme or Niche
  • Who is running/managing it and responsible for daily operations

Claims:

  • Who is going to manage claims – if the Broker - does it have the expertise and infrastructure
  • Is the Program, Scheme or Niche susceptible to the severity and or frequency?
  • Is the program being set up because there is extreme claims activity for this particular class, product or exposure

Regulatory Compliance Issues:

  • Do we understand the laws and regulations affecting the Program, Scheme or Niche and its risks?

Data:

  • Is the historical claims experience of the program and the particular product available

Marketing:

  • How is it to be marketed and sold, is there a marketing plan
  • Has the Broker an IT Platform
  • Is TRM needed to help/develop