Working with an MGA allows capacity providers to put their capital to use without incurring the infrastructure costs of starting a new line of business in house. MGAs, in turn, often turn to cloud-hosted service-based solutions to provide the necessary infrastructure. This avoids the initial costs and ongoing overheads that come with investing directly in IT hardware and personnel.
In today’s competitive marketplace, MGAs need to be able to launch new products quickly. But this cannot involve sidestepping appropriate safeguards. That means you need a flexible solution capable of meeting your changing needs - but which also provides the regulation-compliant sales channels, functionally-rich back office tools and the MI you need to meet your responsibilities to both brokers and insurers.
Many MGAs start out with a software solution which they quickly outgrow. So it is important to select a system from the start that will grow with your business. Equally essential is choosing a software provider with experience of providing integration with other sales channels and industry portals.
Capacity providers and regulators increasingly require that MGAs can provide current data on the state of their books at short notice. You will also need to be able to demonstrate that you can fulfil your auditory requirements. This requires a system that logs a complete diary of all actions by all users, and which can generate reports that integrate information from policies, accounts, claims and underwriting.
What is the cloud? Read more here.