AmTrust Financial Services, founded in the late 1990s during the dot-com explosion, is a leading provider of workers’ compensation for small business. AmTrust’s warranty program business, one of their initial products, is also a growing segment.
AmTrust was launched in 1998. Between 2005 and 2015, its market share in the commercial lines business in the U.S. grew from 0.08 percent to 1.92 percent, according to A.M. Best data. The company is now ranked as the 11thlargest commercial policy in the U.S., up from the 128th in 2005.
AmTrust grew both organically and through the acquisition of 40 other companies. The company prioritized data mining and customer service, as it continued to focus on serving the niche segment of small businesses.
Technology has played a large role in the company’s growth, as Barry Zyskind, President and Chief Executive Officer, explained in an interview with Best’s Review, an A.M. Best publication.
“Early on, we recognized that we could differentiate ourselves through technology. Every application we use, from underwriting to claims management, is built internally to maximize our productivity and data mining capabilities. When we acquire a business, we quickly integrate it on our technology platforms. Our digital strategy has absolutely set us apart in a highly competitive industry.”
“We use our proprietary technology and extensive database of loss history to help appropriately price and structure policies, maintain lower levels of loss, enhance our ability to accurately predict losses and maintain lower claims costs than the industry as a whole.”
Barry Zyskind added that AmTrust’s warranty program has also been growing well.
“Today, our automotive and powersports vehicle service contract division is a world leader, while our retail and consumer products extended service plan division ranks among the world’s top three.”
“With more than 25 million warranty policies in force in 2015, we’re set for continued growth, not just in North America and Europe, but throughout Latin America and into Southeast Asia as well, where we are working with leading mobile device retailers.”