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Anticipating tomorrow: blueprint for growth

It’s prime time to be an insurance program administrator (PA) and carrier in the American sector, as these firms can best show their true worth by anticipating what is coming next and building programs in that direction. Success depends on agility, investment in digital transformation, proactive risk management, and a strong focus on compliance and sustainability.

The best in the business are reaping the rewards of specialization, agility, and long-term vision by building for scale, investing in data, and ensuring their underwriting is on point.

The Target Markets Program Administrators Association Mid-Year Meeting 2025 concluded that the segment continues to outpace non-program commercial insurance in growth.

But the shift isn’t happening evenly because, while property is softening, liability remains constrained due to a burgeoning litigation environment where larger settlements occur.

Geography of risk is also changing as what were once fringe exposures, such as wildfires and hurricanes, are now central to underwriting conversations. 

These factors demand that industry leaders develop a broader view.

“We can’t just build programs for the past – we have to anticipate what’s next,” says Jennifer Burnham, division VP at Great American Alternative Markets.

Insurance Business America recognizes the most resilient program administrators and carriers through extensive surveys and research. 

Program administrators were ranked based on their achievements and initiatives across a range of areas, including the largest programs, expertise and stability, and innovations in program development. Program administrators were also asked to provide feedback on the carriers they work with. 

Together, they are recognized by IBA as the 5-Star Program Administrators & Carriers 2025.

Industry focus

A range of factors are impacting the decisions and strategies of the leading insurance program administrators and carriers.

1. Technology and digital transformation

  • AI and automation: Over 75 percent of US insurers have implemented generative AI in at least one business function. AI is widely used for claims processing, risk assessment, fraud detection, and customer service, driving efficiency and reducing costs. AI-driven anti-fraud solutions are expected to save the industry tens of billions by 2032.
     

  • Cloud adoption: Cloud-based platforms now account for half of all third-party administrator (TPA) deployments, enabling scalability, integration, and real-time data access.
     

  • Embedded insurance: The distribution of insurance at the point of sale (e.g., via real estate or automotive platforms) is rapidly growing and projected to exceed $722 billion globally by 2030.
     

  • Deloitte research suggests that AI can provide US$4.7 billion in annual growth, demonstrating the immense opportunities to be capitalized by US providers and carriers.
     

  • Deloitte also suggests that between $80 billion and $160 billion in fraudul…

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