QBE Program Business Unit [Rough Notes]

The QBE Program Business Unit, one of the premier writers of program business in the United States, continues to build up its ability to provide one-stop shopping to its clients and prospects. By expanding resources in the three territorial regions: East (NYC), Central (Itasca), West (Irvine), it's also creating a Program Manager culture.

"With additional resources and the establishment of an Internal Programs Unit (IPU), we are refining the operating model that was put in place in 2011," says Doug Bennett, Interim Head of Program Business. He adds that the IPU allows QBE to entertain program opportunities that normally would have been declined due to size, lack of underwriting infrastructure, etc. "We realized that we were missing a significant opportunity to convert profitable portfolios of business that either didn't have the scale, underwriting resources or needed incubation time before becoming a program in the traditional sense."

Each territory has an Underwriting Leader with significant expertise who manages all aspects of the program business in his or her region. Program Managers based in the territorial offices handle property, Commercial Auto, General Liability, Commercial Package, Worker's Compensation, and Professional Liability.

The quality and success of QBE's program business begins with its partners. QBE seeks Best in Class underwriters who provide suitable returns for the risks it assumes on their behalf. Ideally, these partners are aligned with QBE in a risk sharing mechanism-whether it's a sliding scale commission or captive retention. Partner relationships are approached with transparency and fair-mindedness, and a commitment to underwriting discipline. A robust due diligence process and multi-disciplined underwriting/operational model support partner relationships.

Our customers are highly specialized Program Administrators who operate in unique market niches such as Pet Insurance, Student Accident, Agricultural business, Coastal Condominiums and Real Estate E&O. The goal is to delegate authority to Program Administrators and Group/Agency Captives that can demonstrate sustainable competitive advantage in the market. In conjunction with underwriting knowledge, they need to have loss control techniques, use of tailored coverage forms, and proactive claims management skills.

As a key part of their sales strategy, the Program Business Unit has maintained a high profile in industry events such as Target Markets. In addition to being a Gold Sponsor, it continues to support the Finance & Accounting module of Target Markets University, AAMGA, NAPSLO, VCIA, PLUS and other established functions that attract the type of clients with whom it wants to do business.

The Program Business Unit has the benefit of QBE Insurance Group Limited's global support, one of the top 20 insurers and reinsurers worldwide. Headquartered in Sydney, Australia, the Group operates out of 52 countries and has a presence in every key insurance market. QBE's North America Division conducts business through various property and casualty insurance subsidiaries. The company produced $7.5 billion in gross written premium in 2011 and has a 90.6% combined operating ratio.

Enhanced by its wide and deep product offerings, QBE North America comprises multiple admitted and non-admitted companies licensed in all 50 states. QBE Insurance companies are rated "A" (Excellent) by A.M. Best and "A+" by Standard and Poor's.

If interested in learning more about the QBE Program Business Unit, visit their website at qbena.com/programs.aspx

Doug Bennett

Interim Head of Program Business