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If a carrier were to poll the MGA market, what would the biggest need be? What segment of the market is underserved or has been ignored by the carriers? If someone were to be looking to form a new carrier to write MGA biz, what sector would provide the biggest bang out of the box?

reasonaby priced general liability for general contractors

A commercial general contractor can be done pretty aggressively by the standard markets. Contractors working in new Tract homes, or Condos, are almost impossible. And, frankly, for good reason. If a new market comes into this segment, they could write a ton of business...but have to be prepared for the losses 5 years down the line.

Would it sell just as well if sold on a claims made form?

Most of the time, if you are doing New Condo or Tract work, you are on a claims made form anyway. This is a fine form, AS LONG AS you keep it in force forever...or buy the tail coverage when you are able to go back to occurrence form.

Too many brokers don't understand the difference between claims made and occurrence forms, and sell strictly on price. Price is usually the least important factor in a policy, but often the only one that is considered.

If you have a risk you would like to discuss, send me a PM.

What support do you have for your comment that most contractors working on new condos or tract homes have claims made coverage? That is totally the opposite of our experience.

Even carriers who have very strong prior work exclusions write on the Occ form. That forces the liability for prior completed work on their prior carriers who are usually Occ form. That is not a claims made situation.

Even the largest risk retention groups [who now write a very significant number of tract subs] which exclude completed prior projects, now allow carry forward and while their policies are proprietary forms, they most certainly are not claims made.

Contractors working on new condo projects are invariably covered by wraps. They are not claims made. They are Occ form and project specific [even if rolling] with their own tail.

You are correct, in that, claims made coverage requires the continuous purchase of tail coverage to be effective long term but with contractors that is a dream. Coverage [incl appropriate AI endts], loyalty, a long horizon -- all of that is nice but the fact is that even the biggies buy price and close their eyes.

I would suggest a new carrer with a rating to write non-standard auto coverage in NV. & AZ. Surplus requirements are minimal, premium is plentiful and the tail is shorter than other options mentioned.

An efficient general agency can compete with direct auto markets as several currently do. Automation incuring most of the money transfer costs to the MGA will encourage agents which now incur a significant amount of costs to accept premiums on behalf of the direct writers.

MGA"s have local knowledge which allows for profitable loss ratios from year one in lieu of learning with the direct writers for the first several years.

Be glad to provide further info.

Snoop, Your posting will lead to a lot of discussion in the forum - however, the needs are going to be different based on geography and book of business. Was this just a general what would you like to have type of posting or are you seriously looking for an answer? If the latter you need to put some peramiters on your question.

LadyBroker wrote:Most of the time, if you are doing New Condo or Tract work, you are on a claims made form anyway. This is a fine form, AS LONG AS you keep it in force forever...or buy the tail coverage when you are able to go back to occurrence form.

Too many brokers don't understand the difference between claims made and occurrence forms, and sell strictly on price. Price is usually the least important factor in a policy, but often the only one that is considered.

If you have a risk you would like to discuss, send me a PM.

They actually have a couple RRG that are providing coverage for this on an occurrence basis and if the tract home contractor is of decent size most of the contracts will not accept claims made paper.

okay, reasonably priced general liability for general contractor - commercial buildings, (non residential) with a standard approved carrier in Northeast. Offering blanket additional insureds. Yes, of course we want occurrence form.