It seems that MGAs are coming around to the idea of working with insurtech businesses to deliver a better customer experience. Research conducted back in 2018 by the MGAA confirmed that as the role insurtechs play in the market becomes clearer, MGAs’ view of them is changing for the better.
That research is now two years old. The insurtech sector is two years older; businesses that were start-ups back then are now more mature, more established and more robust. This should give MGAs the confidence that insurtechs are here to stay and that the opportunities to collaborate are worth closer inspection.
Here we look at 4 areas where MGAs could harness the technology offered by insurtechs to become more efficient and improve customer service.
What Value can an MGA Derive from Collaborating with an Insurtech?
There are 4 key touchpoints in the customer life cycle when insurtech tehnology can make a discernible difference to how an MGA presents itself:
- Point of sale
- During the policy year
- When a claim is made
Let’s look at each of these in turn.
Pre-purchase: providing a potential customer with the answers they need to make a positive buying decision
Customer behaviour has changed over the past decade or so. Micro business behaviour mirrors that of individual retail customers. It’s an undeniable fact that the move online has been unstoppable. Research is done on a laptop or mobile device; purchases are made at the click of a button.
If a potential customer can’t get the answers they need on your website quickly, they move on. A lot of research by customers is done outside of office hours, so even if your phone number is prominently displayed or you have a livechat facility, there’s no guarantee you’ll be there to help when they want it.
The solution developed by insurtechs is chatbots. These use AI technology to provide insurance advice at the point of sale to enable automated purchases. They capture the insurance needs of your customers and inform the risk engine so that policy recommendations can be generated. This gives your customers advice and support 24/7.
Point of sale: Real time pricing and a slick buying process
MGAs can benefit from the “plug and play” technology developed by insurtechs. Platforms can be white-labelled and are ready to be deployed, removing the time, hassle and expense of building your own system. The APIs can integrate with other platforms and data is stored in cloud servers for easy access. Pricing is done in real time and customer profiling data is available to support the underwriting process.
During the policy year: user-friendly interfaces
The work doesn’t stop once a sale is made. It’s not unusual for changes to be made mid-term. Insurtech platforms can easily accommodate MTAs. The technology gives the MGA full control, enabling changes to be made easily whenever they’re needed.
When a claim is made: automated FNOL process
The same insurtech platforms can also be used by third party administrators for first notification of claim. They can provide document management and real time data analytics. Systems are also able to provide role based access levels with full audit trails, satisfying rigorous control procedures.
The only question that remains is why would an MGA not want to collaborate with one of the established insurtech businesses when such a broad array of capability is available for re-use?