Targeting Program Growth

With the Target Markets Program Administrators Association (TMPAA) Annual Summit coming up later this October, we thought it might be a good idea to put our finger on the pulse of that market. Some of what we found was surprising. Data from the web suggested the global insurance program administration market, valued at $4.7 billion in 2022, is growing due to demand for specialized coverage, with North America holding a significant share. But we wanted to know more, specifically in Property & Casualty insurance.

According to Swiss Re, non-life premium is projected to grow 2.3 percent annually for the period 2025 to 2026, which is down from 2024’s 4.3 percent growth due to moderating premium rates. This includes programs like property and auto insurance. And according to Global Market Insights, the home insurance market is projected to grow from $234.6 billion in 2024 to a higher value by 2034, with a compound annual growth rate (CAGR) of 8.5 percent from 2025 to 2034, driven by rising homeownership, increasing property values, and AI-driven risk assessments.

What’s Up with That?

To what is this growth attributable? Again, according to Global Market Insights, AI, the Internet of Things, and predictive analytics are enabling more precisely tailored products, more flexibly dynamic pricing, and more effective risk management, particularly in home and cyber insurance. According to Precedence Research, an aging population, a growing middle class in emerging markets, and younger demographics are driving the demand for customized insurance products. And favorable regulations, tax incentives, and stabilizing interest rates are supporting growth.

For specific target market programs, growth projections depend, of course, on the niche and the region. But the overall trend points to steady expansion driven by innovation and demographic shifts, tempered by challenges like climate risks and social inflation.*

That’s why we expect good things at the TMPAA Annual Summit.

See you there.

* Social inflation refers to the rising costs of insurance claims driven by societal and economic factors like more frequent and larger lawsuits, often fueled by aggressive plaintiff attorneys or class-action suits; higher jury awards, sometimes due to public sentiment or perceptions of insurers having deep pockets; expanding legal definitions of liability, leading to more claims being paid out; growing public distrust of corporations or insurers, influencing juries to favor claimants; rising healthcare expenses that inflate claim costs, particularly for personal injury cases — all of which drive up premiums and operational costs as insurers face higher claim payouts.