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PMC Wrap-Up Services
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a MRM Partner |
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What are the benefits of a one source independent
wrap-up administrator? Back
The following items highlight common program sponsor problems that resulted in PMC's
expansion to provide full wrap-up administration, which has resulted in overcoming such issues:
1. Wrap-ups were being sold as insurance broker and carrier packaged" products. While some
brokers and consultants talk about the need for special design and coordination with other
important elements of construction programs, seldom do broker-administrators address all of
a wrap-up's eight" essential operating components. This absence of thorough wrap-up
operational integration into an organization's construction program significantly diminishes a
wrap-up's effectiveness, including its ability to produce proper coverages and real savings for
the sponsor.
2. While a wrap-up's system capabilities are critically important to its success, the development
and ongoing management of wrap-up systems by insurance brokers have never been a priority.
Today, system inadequacies continue to disrupt the ability of many wrap-ups to provide credible
financial and operational results. Sponsors have often found that what is presented as a
comprehensive system is often different than what is actually delivered, implemented, and
operated. In hindsight, many sponsors feel that they were intentionally left uninformed
(or misinformed) in this critical area.
3. Data corruption" is a common, recurring problem experienced by many wrap-ups. Keeping
appropriate contractors' wrap-up data allocated to the proper sponsor and/or project within an
administrator's commingled databases continues to be an issue that can significantly impact a
wrap-up's financial reporting effectiveness. This problem persists in most of the large
brokerages, due to ineffective controls used by broker-administrators. Additionally, brokers do
not offer truly portable" sponsor-dedicated database systems, since it would open the door for
sponsors to more easily move their business.
4. A wrap-up administrator must also respond to, and assist all contractors with, their project
insurance questions, and not just address the sponsor's concerns. Contractors covered under
effectively structured and properly managed wrap-ups do value and embrace such programs
because of the meaningful financial and non-financial benefits a contractor realizes from a
well run program. Fair and proactive assistance from the wrap-up administrator should be
provided to contractors. PMC's approach to wrap-up development and management brings
significant resources and assistance to both the construction program sponsor and to the
contractors covered by the wrap-up. PMC's approach produces meaningful financial,
operational, and administrative benefits to both program sponsors and contractors.
5. While the large broker-administrators employ many people, high employee turnover
(particularly common among the largest insurance brokers) causes considerable disruption
to their ability to deliver consistent, accurate services for long-term construction programs.
6. While program sponsors have become increasingly dissatisfied with the small pool of
brokers with wrap-up administration services, until recently, sponsors have had no viable
alternatives. PMC offers an attractive alternative previously not available.
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