Why are Insurers using Capacity Place?
Capacity Place enables you to source relevant programs as they come to market and build a quality pipeline of new business prospects in support of business targets.
Capacity Place’s program listings are designed to provide you with the information needed to quickly assess initial fit with your firm’s licenses and risk appetite.
if you are embarking upon larger growth plans to expand offerings into new classes, territories, InsurTech channels parametric lines or other growth areas, Capacity Place provides an alternative source of new business opportunities.
Capacity Place can provide you with opportunities to write a follow-line, benefiting from the expert of a slip leader, and then increase your exposure over time commensurate with your level of comfort.
Capacity Place enables you to establish direct relationships with Capacity Seekers.
You may not be able to travel at the moment due to Covid-19. Capacity Place is a great way to continue to source programs while you cannot meet up in person, attend conferences or hop on a plane.
If you are travelling a lot to originate business, Capacity Place enables you to qualify opportunities in advance, making your business travel far more productive.
Nowadays, programs typically need to be reviewed by multiple departments (e.g. business development, underwriting, actuarial, compliance, reinsurance, finance, IT, legal, and DUA management, etc) prior to sign-off. Through Capacity Place, you can invite your work colleagues to review the program directly.
If you are under pressure to reduce your acquisition costs, Capacity Place may offer programs with lower placing commissions, underwriting commissions or broking fees.
What are the Benefits of Program Business to Insurers?
Insurers will often delegate for attractive books of business where there is local geographic representation who bring distribution relationships and expertise.
In an interview with Insurance Journal, a senior executive from Aon Reinsurance Solutions recently stated that “After studying this over the last 7 or 8 years, the MGA Marketplace outperforms the general P&C industry by almost 10 points which is very significant these days.”. Being closer to customers with specialist expertise and profit commission incentives are the key sources of superior performance.
Insurers will outsource “factory” business to free up their time to focus on higher value risks.
Program business allows insurers to variabilize their cost structures and often delivers lower expense ratios particularly where insurers are based in high-cost locations and/or avoids the cost of new office setup and infrastructure. This is particularly important for smaller books of business.
When entering into a new market segment, Insurers have found it less risky and often less costly to provide capacity to an existing program than to set up anew – recruiting staff, setting up new offices and systems, etc.
Use Capacity Place’s powerful search tools to source programs which fit your company’s risk appetite and licenses
Evaluate programs quickly by reviewing commercially-sensitive program information stored in the secure document repository
Keep track of all programs in one place from initial enquiry through to conclusion
Expand your opportunity set, qualify prospects ahead of face-to-face meetings and make your meetings more productive
Access more cost-effective distribution channels and tackle low value-for-money stages in your distribution chain
Invite colleagues from across your company to collaborate, view the program listing and access the Program Data Room to review documentation
A. Absolutely. It’s one of the main reasons we created capacity place.
More FAQs can be found here.