At the Managing General Agents’ Association (MGAA), we believe there is no partnership more perfect than that between MGAs and their broker partners. According to our 2019 member survey, over 84% of our members choose to distribute their products solely through brokers – the strength of this relationship shows no sign of waning. Innovation MGAs are leading the way in innovation.
The size and structure of MGAs gives them the ability to be more agile in testing and implementing new technologies quickly. Whether it’s investing in new systems to improve the quote and bind process for brokers or using data enrichment to drive more insightful risk placement, MGAs are often at the forefront of InsurTech developments.
Many MGAs serve specialty markets covering a huge variety of standard and non-standard risks. It can often be difficult for brokers to place these risks as insurers may deem the classes unprofitable or they may not have the right expertise in-house to underwrite such risks. However, MGAs have built up dedicated expertise in many of these classes of business areas with years of proven success.
This allows brokers to service their clients or expand into new markets with the confidence that they’re working with a partner who can use their knowledge to take advantage of market conditions. Collaboration MGAs want to partner with brokers where they can add tangible value either in terms of their products, approach to innovation, technical capabilities or the strength of capacity. Any partnership should be built on the premise that the MGA will deliver maximum value for the broker.
By partnering with an MGA, brokers are more likely to have direct access to technically competent underwriters who can make decisions. This not only gives them the ability to quickly and easily contact someone in case of an urgent query but is also the foundation of a genuine partnership where new lines and opportunities can be explored.
One of the aims of the MGAA is to represent and champion our members and educate the wider industry on the role MGAs play in driving insurance forward. This also includes showcasing the many benefits of choosing this type of underwriting business.
We host ‘Meet the MGA market’ regional events to give our members the opportunity to showcase what they can offer local brokers. We know that there are many regional brokers looking for opportunities to write business with entrepreneurial, knowledgeable and enthusiastic MGAs and we’re pleased to be able to set the scene for those first meetings.
With many thanks to Insurance Age where this article first appeared.