Q: How have you been challenged as a program business manager?

Sharon: Relationships take time. There are different challenges with different Program Administrators. So, working through that can be rewarding and difficult. The best way to overcome challenges is through effective communication. What’s happened is it has become too easy to send an email instead of participating on phone calls or Team/Zoom meetings. However, it is important to spend quality time to develop strong relationships with program administrator partners through communication in person and via phone or Teams. It leads to quicker alignment on solutions and reduces the back and forth via email.

Patti: As Zurich’s strategy evolves, we have to get ahead of the message with our Program Administrators. Sometimes this can be a challenge given the movement in the marketplace. Being able to communicate clear direction is essential and not always easy.

Todd: Insurance is very cyclical. Some of the lines of business that we write and have appetite for can shift, depending on what’s going on in the world, such as social inflation and nuclear verdicts. Our appetite is strong one year for a certain line and the next year it may not be, and Zurich may want to focus in another area. Communicating the challenges of the insurance market can be a challenge itself.

Q: When it comes to portfolio management are there certain characteristics that you focus on to manage the portfolio?

Sharon: We delegate underwriting authority to our Program Administrators. The assumption is they will handle about 85% of submissions and only refer into Zurich for authority to write 5-15% of business. So, we really need a partner that has invested in hiring, people with subject matter expertise. We’re also looking for partners that are committed to developing and executing a strong marketing plan so that we can meet our top and bottom-line targets on both sides. In addition, we want a partner that has a good distribution network. We are seeking partners that have those characteristics to ensure that we meet our joint goals.

Patti: A lot depends on the type or lines of business we write in the program. Overall, I focus on profitability and growth for each of my programs and how we, at Zurich, can help our Program Administrators attain their goals to ensure success for both parties.

Todd: That’s the No. 1 job description of a Program Business Manager, is portfolio management. We’re giving the pen to our Program Administrators. We’re not referral underwriters. We are looking at the portfolio and looking at how to improve the loss ratio, how to grow the top line, improve marketing efforts, review claims in a way that’s different. We use data and analytics to give us different insights. We may get our technical underwriting team involved in audit reviews. We do a number of portfolio management activities throughout the month that give us an overall view of what that book of business looks like. We don’t say, “Hey, Program Manager, we see this,” and dictate a change. We say, “Hey, Program Manager, we see this, we want to bring it to your attention. Let’s work together to solve a problem.” We’re trying to be proactive versus reactive and talk something out before it becomes a problem. We’re doing a lot of work on our portfolio management process.

Q: What are the ways you work with your Program Administrators to find out what their marketing plans are and how they intend to grow the business.

Sharon: We have a relationship where we are in constant contact with Program Administrators. In the fourth quarter of the year, the conversations start with partners about the following year and what our budget is and how we are going to get there. We outline a plan by quarter, documented and mutually agreed upon. We articulate the goal for GWP and rate targets and market strategy with dates that we can meet, and all this rolls back up to our goals. It’s collaborative. It’s also a living document, because things happen; maybe we have a great first quarter and are on target to make even more premium. Maybe we come up with a great idea that requires us to modify the marketing strategy. The Program Managers meet with Program Administrators every day. But formal meetings – the ones I’m talking about – are monthly, to see how the month was, did we meet the plan, are we on track. There are constant conversations about, are we on track to meet the goals we have identified and if not, how do we get back on track.

Patti: There’s some variability depending on the resources of PAs. Some Program Administrators have a big organization behind them. Others do not. Maybe they are not clear on how to look to the future to set up growth. So, then we may do some of the classes that our Marketing team runs to help them develop their program.

Todd: Any time we have a new Program Administrator, we’re introducing them to our marketing team and walking through the plan, to see what it looks like, what are some gaps, what type of white papers do we have that might be helpful. What type of distribution platforms do they have, are they working strictly with retail agents, wholesale? ZProgramsMatch is a huge asset. We’ve done innovation sessions with some Program Administrators to talk through the entire process to help them redefine a value proposition, get into markets they’re not in today, identify different distribution channels that we can open or unlock for them. We have CE sessions that have been very well received. That’s another way we can show value for our program partners, is our expertise on the marketing side.