HOW MGAS AND MGUS ARE TRANSFORMING THE INSURANCE INDUSTRY
Automation and Efficiency : According to industry analyses , MGAs and MGUs that utilise automated underwriting systems can process claims up to 30 % faster than those using traditional methods . This not only accelerates response times but also improves customer satisfaction rates significantly .
Fraud Reduction : With the adoption of advanced analytics , these entities can reduce fraudulent claims . By employing predictive models that identify unusual patterns and anomalies , MGAs and MGUs are better equipped to prevent losses associated with fraud .
Market Growth : The strength of the managing general agent ( MGA ) market in 2023 is undeniable . Thanks to their flexibility , innovative strategies , and emphasis on specialised and complex insurance lines , MGAs have consistently achieved year-on-year growth . According to a report by Conning , the MGA market expanded by 24 % in 2022 , with the total premiums managed surpassing US85bn the same year .
Data Utilisation : Technology-enabled MGAs and MGUs use data gathered from IoT devices to inform their underwriting decisions . This high level of data integration allows for more precise risk assessments and more competitively priced products .
Customer Retention : Organisations leveraging technology in underwriting and claims management report an improvement in customer retention rates . Enhanced data capabilities and efficient processing translate into higher customer satisfaction and loyalty .
130 June 2024