What’s New: In Brief (May 20, 2008)

The Institute for Catastrophic Loss Reduction (ICLR), The Co-operators and the Downtown Guelph Business Association have partnered in the creation of the disaster-planning program called Open for Business.
Launched in Guelph, Ont., the pilot program consists of a disaster planning folder, a guide and a planning toolkit to help small businesses prepare for business interruption.
During the pilot project, kits will be distributed to raise awareness of the program and assist local companies with business continuity planning throughout the summer.
“Research tells us that at least one in four small businesses forced to close for a period after a loss never reopens,” Kathy Bardswick, president and CEO of The Co-operators and chairperson of the ICLR, said in a press release. “Those that do struggle to remain in business.
“Smaller businesses tend to lack the resources to develop robust business continuity plans, which are standard among larger businesses. This program is designed to help them do just that, so that they can better protect their investments and livelihood.”

The U.S. specialty program market is expected to grow in 2008, according to 56% of the specialty program issuing insurers surveyed by Guy Carpenter & Company.
The total number of survey respondents is not mentioned in the report.
Of the survey respondents, 32% expect the specialty program market to remain flat and 12% expect the market to contract, Guy Carpenter reported.
Respondents perceived the program administrators/managing general agents (PA/MGA) market to be large 92% estimated the total PA/MGA market to be at least US$20 billion in gross written premium, the release notes.
“The program market remains vibrant and has become an increasingly attractive target for new capital,” Carl Bach, head of Guy Carpenter’s program manager solutions specialty practice, said in a release. “Across programs of all sizes, organizational structures, technology platforms and servicing capabilities, we continue to see a strong interest from carriers in doing business with PAs and MGAs.”