Driving MGA Success: Boosting Efficiency and Growth with Innovative Tech
By Michael Parcelli – Senior Vice President, Xceedance
Managing General Agents (MGA) play a vital role in the success of an insurance business. Besides their expertise across markets and lines of business, they bring specialized knowledge to both the customers as well as the underwriters. Given the rapid pace of growth that the insurance industry is witnessing, the MGAs need to be empowered with the latest technology innovations to be able to carry out their tasks effectively.
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Right from agility and adaptability to stay ahead of the competition, the MGAs need to have a strong understanding of licensing and compliance requirements too. Recent studies have indicated that the US property-casualty insurers have witnessed significant growth in premiums sourced by MGAs, with the total market exceeding $70 billion in direct premiums.
To keep up this frenetic pace, technology and digitization have become major catalysts towards driving innovation and efficiencies in the MGA business. Ensuring data integrity and accuracy is one part. Equally important is the issue of setting up an accounting process that tracks everything from premiums to re-insurance, and commissions to claims. Towards this end, MGAs need to align strategically with service providers and enablers who can ensure that their way forward is smoothened out through innovation and a deep understanding of the insurance business itself.