Hyper-Automation and AI: The Secret to MGA Success

The insurance industry is in the midst of a technological revolution, and at its heart are two powerful forces: hyper-automation and artificial intelligence (AI). For Managing General Agents (MGAs), these are not just buzzwords; they are unlocking unparalleled efficiency, agility, and customer satisfaction. By integrating AI and automation into their core operations, modern MGAs are building a formidable competitive advantage. 

This article will explore how you can harness the power of hyper-automation and AI to redefine what's possible for your MGA. We will delve into how these technologies can automate manual underwriting tasks, enhance broker/agent relationships, and deliver hyper-personalized customer journeys.

Enhancing Your Underwriting Capability 

Underwriting is the engine of any MGA, and its performance directly impacts profitability. Traditionally, this process has been manually intensive, with underwriters spending valuable time on administrative tasks. Hyper-automation and AI are completely changing this dynamic. The goal is no longer just incremental improvement but gamechanging transformation: automating up to 80% of manual underwriting tasks. 

So, how does this work? By integrating predictive AI and automation into a modern policy administration system (PAS), you can build the underwriting logic directly into the platform. This allows for straight-through processing of specified risks, freeing your underwriters to focus their expertise on high-value, complex cases. It means shortening quote-to-bind times from hours or days down to mere seconds. 

Great Plains Casualty, a North American MGA specializing in complex commercial trucking, provides a compelling example. Their goal was to create a "no-touch" product where underwriting logic was so deeply embedded in the system that policies could go from application to bind without manual intervention (except for when required). By launching on a modern, agile platform, they achieved this vision. This not only streamlined their operations but also accelerated their expansion into 19 additional states, setting the stage for significant revenue growth. 

This level of automation also leads to smarter, more accurate underwriting. AI models can analyze vast datasets to identify patterns and predict outcomes, enhancing risk modeling and pricing accuracy. Your team gains a collaborative suite of underwriting tools, seamlessly connected to third-party data services, which provides a single source of truth. 

Enhancing Broker Satisfaction and Driving Distribution 

In a competitive market, making the broker experience seamless is a powerful advantage. Hyper-automation and AI are instrumental in creating a broker experience that builds loyalty and drives distribution growth. When brokers can get instant quotes, manage policies efficiently, and access underwriters for complex referrals without friction, they will ultimately deliver more business. 

For example, MGAs across the world are using INSTANDA to empower brokers with self-service portals that facilitate a rapid quote-to-bind experience. Automation handles the administrative heavy lifting, from document retrieval to mid-term adjustments (MTAs), allowing brokers to serve their clients more effectively. 

Pouch Insurance, a North American MGA, took this a step further by integrating an AI-powered, multilingual assistant named ‘Goodie’ into their agent experience. This innovation delivered remarkable results. They achieved a 50% increase in quote volume as agents could work more efficiently, and AI-driven call sentiment analysis helped reduce complaints and hang-ups by over 15%. This shows how AI can enhance the human touchpoints in insurance, providing personalized support at scale and improving overall satisfaction. 

Delivering a Market-Leading Customer Experience 

Today’s customers expect seamless, personalized, and intuitive interactions. Hyper-automation and AI enable MGAs to meet and exceed these expectations. The key is to strike the right balance between automated self-service and high-touch, personal communication. 

Modern platforms give you the capability to automate zero-touch processes, such as mid-term renewals or policy adjustments, while equipping your team to manage exceptions effectively. This dual capability ensures efficiency without sacrificing service quality. With no-code configuration, teams can seamlessly adapt and refine the customer journey. For instance, you could A/B test different customer experiences or set up multiple product variations to better serve different segments. 

This ability to personalize at scale is a gamechanger. By leveraging data from third-party data and iterating products based on the insights you receive, you can deliver coverage that is far more personalized to an individual customer’s needs.  

Take Farmsure Underwriting as an example. By relaunching its Farm Combined product on a modern platform, Farmsure achieved a 50% increase in gross written premium (GWP) within just eight months. The platform's seamless integration with third-party data allowed Farmsure to enhance its underwriting process with real-time risk data, enabling brokers to provide tailored policies that reflected the unique needs of each farmer. Additionally, the streamlined quote-to-bind process and self-service broker portal empowers brokers with greater control and efficiency, further enhancing customer satisfaction. This combination of real-time data, intuitive tools, and customizable policy options not only improves risk selection but also positions Farmsure as a leader in agricultural insurance innovation. 

The Future is Automated and Intelligent 

Now is a pivotal moment for MGAs. We’re seeing technology not only change the pace of operations but also raise the bar on what’s possible in underwriting, broker relationships, and the customer journey. The progress made by Great Plains Casualty, Pouch Insurance, and Farmsure Underwriting is proof that with the right approach and technology, industry-defining transformation is achieveable. 

Curious how hyper-automation and AI can transform your MGA? The MGA ROI Playbook, “1% Tech Spend. 100% Control,” offers a deep dive into the technologies and tactics that set top MGAs apart. Download your copy today.