MGAs (Managing General Agents) used to be seen as specialists, operating as wholesalers for particular lines, specialty lines, or programs. But now they’re being seen in a new light, as a means to giving insurers more flexible alternatives for developing programs and bringing them to market — and as a means to helping insurers bridge technical gaps cost-effectively, advantageously, and competitively.
MGAs are enabling insurance companies to access technology, underwriting capabilities, and other capabilities and forms of expertise in ways they likely couldn’t do on their own, at least not quickly or with any appreciable cost/benefit. They’re enabling insurers to view partnerships differently, more productively, and more effectively without having to shoulder capital costs, fixed investments, and the carrying costs of infrastructure.
In addition to the fact that MGAs can react much more quickly to market opportunities than insurers can, MGAs can avail themselves of partnerships to fill in whatever gaps they may have. Whether they need insurance expertise, technology expertise and development capabilities, data sources and analytics capabilities, and/or the ability to monitor and respond to consumer demand, because they’re smaller and more nimble than insurance companies, MGAs are better positioned to leverage those kinds of partnerships to get the services they need. Those services, in turn, enable MGAs to quicky bring to market the products insurers want to sell and that consumers want to buy.
This rapidly changing business environment translates into positive differentiation and competitive advantage for MGAs and for the insurers they represent. It also constitutes positive disruption for all parties involved in insurance transactions — MGAs, insurers, prospects, policyholders, and claimants. With technology enabling automation, and with people freed up to provide the personal service that breeds repeat customers, everybody wins.
To learn more about how MGAs are leveraging digital technologies to deliver superior value to insurers and policyholders, watch the recent AM Best webinar sponsored by Xceedance.