Today’s insurance markets require Managing General Agents (MGAs) to constantly innovate and adopt newer mantles. At the same time, MGAs must retain their competitive edge to grow critical insurer relationships in their role as force multipliers. Razor thin margins, increasing risk envelopes, and changing customer expectations further mandate the need for such measures.

Multiple challenges hinder an MGA’s operational and revenue generation objectives. These range right from the need for consistent product and service excellence to accurate risk assessment and partner retention. In this context, the C2L BIZ team has put together a few best tips to accelerate the MGA’s journey towards their next growth phase.

1. Opt for tech driven transformation

Lean teams are a salient feature of MGA operations. Technology-driven automation takes this focus on operational costs and efficiency to the next level. For instance, manual tasks in policy issuance, renewals, and processing of claims are ideal candidates for automation.

AI-powered underwriting and fraud detection capabilities are other cases in point. Novel possibilities like partnerships with Insurtech players that improve relationships with insurers further enhance the business.

Attracting capable agents is often a tough task for MGAs. Retention of key advisors using differentiated commissions and incentives poses additional challenges. On this front, MGAs can leverage end to end Digital Distribution Transformation to achieve revenue growth goals. This includes digital transformation of processes like agent recruitment, hierarchy, and compensation management.

Options like e-Onboarding facilitate end-to-end digital agent recruitment process via apps and portals. Other features worth implementing include smart OCR, differentiated agent journeys, approval workflows, and relevant integrations.

Effective management of complex organizational hierarchies using Digital Distribution Transformation is a great benefit for MGAs. For example, SymbioSys Hierarchy Management offers a unified system to onboard and oversee agents, banks, and other entities. It supports customizable hierarchies that meet diverse channel needs. It maintains various self and channel hierarchies that include reporting, geographical, and training aspects.

Traditional spreadsheet-based Compensation Management processes at MGAs witness significant changes as part of Digital Transformation. A case in point is the automation of commission calculations based on different parameters (such as product lines and vehicle types). Many MGA success stories leverage Digital Distribution Transformation to fully streamline commission rules, overrides, annualized commissions, indemnity commissions, and chargebacks. The implementation also ensures regulatory compliance, even as it maintains clear audit trails.

Innovative compensation capabilities are a direct offshoot of Digital Distribution Transformation. For example, MGAs can configure key performance indicators that improve effectiveness or facilitate tailored compensation models for top-performing agents. It equips MGAs with a range of payment frequencies (daily, weekly, bi-weekly, or monthly) for different channels and distributors.

2. Empower agents with innovative illustrators

Clear communication is essential to attract and retain long-term customer relationships. This is especially important for complex insurance products. MGAs can leverage sales illustration tools to empower their agents on this front.

Sales and inforce illustration tools enable an MGA’s team to generate complex interactive Illustrations that win over customers, even in offline modes using mobile devices. It addresses the agent’s specific needs through solves and graphical representation of values. This ensures better visualization for quick sales closure. For instance, such tools include solvers which enable agents to choose a product that maps a customer’s life events with the right coverage.

Modern illustration tools include customer collaboration features. These tools empower each agent to engage more effectively with prospects and customers—either in-person or via virtual communication capabilities.

Ease of use and extensive configurability is a must-have for sales illustration tools. For example, SymbioSys Sales and In-force Illustration uses a highly configurable, no code-based digital interface. Use of such solutions enhance insurer competitiveness with faster product launches and sales illustrations. These solutions also integrate seamlessly with insurers’ digital tools via APIs.

3. Faster and accurate underwriting

Efficient underwriting case management is a must-have in the MGA business. This is where MGAs can leverage new age underwriting tools to step up the game. These solutions feature effortless rule configurability, underwriting workflow optimization, detailed reporting, and analytical dashboards.

On the underwriting side, MGAs must automate evaluation processes to streamline communication and maximize operational efficiency. Highly reflexive questionnaires are essential to intelligently capture mission-critical information and documents right from the outset.

Real time data integration equips MGAs with 360-degree customer profile views and dynamic risk assessment adjustments. The latest underwriting solutions seamlessly acquire data from sources like Policy Admin systems, Document Management systems, Master Data Management (MDM), and third-party evidence vendors. This ensures accurate policy pricing based on data from various sources for better risk analysis and predictions.

Create a full-fledged Workbench for manual interventions and audits. Use of such comprehensive tools elevates an MGA’s decision-making and tracking skillsets. It enables MGAs to quickly issue competitive counteroffers, record detailed findings, and refer to Re-Insurance.

Detailed reporting and analytical dashboards help MGAs to continuously step up their underwriting game. It enables key stakeholders to understand rule evaluation patterns and facilitates real-time tracking.

4. Efficient claim servicing, every time

MGAs tend to operate in niche segments which calls for strong customer servicing capabilities, especially when it comes to aspects like claims management. Optimal, personalized customer experiences in such times is essential to acquire repeat business and referrals.

Effortless and personalized services ensure that MGAs establish differentiated claims management experiences for their customers. This is where claims management tools can create a unified platform for functions—right from claim administration and assessment all the way up to investigations and finance approvals. These ensure optimal risk control and reduce human dependency.

Up to date claim status information ensures optimal interactions between customers and agents. For example, MGAs can ensure Express Claim options for small value claims. Auto claim approvals based on business rules is another case in point. Claim management platforms also ensure the availability of feedback information for effective and improved claims management. Options like stage wise turnaround time (TAT) analysis are handy to identify and resolve process bottlenecks.

Ready for the next growth leap of your business journey? Contact us on [email protected] for a comprehensive Digital Distribution Transformation consultation session that suits your MGA business’ needs.