10/02/2024 | News release | Distributed by Public on 10/02/2024 15:21
In today's insurance market, the faster a new product can be launched, the more likely it is to edge out competition, meet carrier expectations, and drive future revenue. Speed is everything, particularly for specialty lines that are underwritten by managing general agents or managing general underwriters (MGAs, MGUs).
Increasingly, carriers rely on their partnerships with fast-moving MGAs and MGUs to distribute niche products-but launching new products and scaling efficiently can be challenging when an ambitious speed-to-market strategy isn't reinforced by integrated technology designed with the full policy lifecycle in mind.
In a recent panel-led webinar, Race to the top: 10 best practices to boost speed to market for MGAs, featuring David Mathes, VP of Underwriting Systems at Ryan Specialty, industry experts shared insights for navigating the systems challenges that hinder efficiency. Their advice? A successful launch depends on understanding both people and process, plus leveraging the right technology to support them both.
MGAs are unique in the insurance distribution landscape, and their needs tend to be just as specialized as they are. They need solutions that aren't intended solely for carriers or agencies, but rather solutions that are purpose-built for MGAs. The ideal MGA management system should be product-agnostic and agile, allowing MGAs to adapt quickly to changing market needs without having to rebuild their processes from scratch.
Additionally, it's not just the systems that need to be agile-the team must be just as flexible and focused on the speed-to-market goal. Whenever there's a critical deadline, competitive MGAs depend on highly skilled people, clearly defined processes, and highly effective technology operating in tandem.
From a personnel standpoint, it should be acknowledged that the additional effort required to rapidly launch a new specialty product means an MGA's employees must essentially do double duty: the same amount of work as for any other product launch but compressed into a timescale of only a few months or weeks. For these efforts to succeed, all departments within the MGA-from legal to compliance to technology and business development-must work together and have the necessary information to manage their workflows seamlessly.
In an example shared by David Mathes from Ryan Specialty, the team launched a brand-new portfolio property MGU within 80 days. In another example, the company acquired two EU business units and, within 45 days, issued their first bound policy.
These impressive timeframes were achievable only by having clear focus, a highly motivated and talented team, carefully managed audits for compliance, and the flexibility of Vertafore's MGA Systems.
Among other best practices MGAs should keep in mind when refining their speed to market strategy or investigating technologies to support people and process, a few themes emerged:
For more best practices and expert advice to boost speed to market, watch the webinar.