The insurance industry is full of many players. Managing General Agents (MGAs) and carriers often work together and partner for managing policy administration.
Policy administration for both involve very similar processes for the policy lifecycle. This means that for carriers and MGAs to be competitive, technology is brought into focus for helping make the process more efficient and to add services beyond what most agencies can do.
What’s the difference between MGAs and Carriers?
Carriers provide insurance policies and partner with agencies to help sell these policies. MGAs are a type of insurance agency that can manage both the selling and underwriting process.
MGAs are challenged with finding unique policy administration solutions that include many additional services that go beyond quoting and binding. These companies have a close focus on emerging markets and are faced with high risk.
Through a series of interviews, we’ve found 5 ingredients to success for MGAs when it comes to strong partnerships, talent, customer experience, agility, technology, and a “secret sauce.”
“Two of the major differentiators of MGAs who are competing effectively are, first, that they have innovative technology that brings real differentiation to the program and, second, that their technology integrates with carrier systems and vice versa.” – Cory Crosland, CEO of Croscon
P&C Insurance Solutions for MGAs
Most MGAs would rather own the data they gather (quote/bind, decline, reject) rather than wait for the data to arrive from their insurance partners.
Flexible and detailed reporting is required for MGAs to obtain actionable insights and to communicate these insights with monthly bordereaux files for their carrier partners. Real-time audits take these insights a step further for MGAs.
For the best all-in-one solution, MGAs have a high standard for both executing an insurer’s rating and generating an insurer’s set of binder and policy documents from their own system, thereby reducing the possibility of errors on the MGA side.
The best MGA solution includes the following:
- Obtain data from the insured
- Complete advanced reporting for internal use
- Complete in-depth audits to provide to their partner carriers
- Generate and compile all the necessary documents in one document management system
- Connect with a mail room for distributing documents
WaterStreet Company & MGAs
The WaterStreet Cloud P&C SaaS Insurance Suite offers services tailored to the specific needs of MGAs, MGU’s, Captives, RRG’s and others designed to reduce risk, lower cost, accelerate business growth, streamline workflows and add efficiency, while quickly adding new lines of business to meet industry demand.
Our solutions provide all the functionality required to operate a successful company, including the quote, bind, issue and endorse process, underwriting, document management, insured portal, analytics, claims and accounting reports, and distribution.
MGAs have access to exchanging data with any third-party products company using modern-innovative API’s in our solutions.
“In our industry, a company needs to evaluate its systems constantly, because the only thing constant is change. If you’re not tweaking and updating, you will not be able to compete. The bottom line is that MGA’s must be more agile and more adaptive to changes in the market.” – Cory Crosland, CEO of Croscon
If you want a one-stop-shop solution for running your business and eliminating the need to juggle multiple vendors, talk to us today.
Reach out to WaterStreet Company today to request a consultation and demo of our solutions.