It is hard to imagine a world in which data is not ever-present in our thoughts. Working as part of the insurance ecosystem we consider its potential, its limitations, the challenges attached to reacting to insights, almost constantly. But from the customer's point of view, the concept barely exists. Or at least that was once the case.
Increasingly consumers are gaining 'data literacy' and understanding what we as insurance executives are attempting to measure, and the possibilities that are created, in products and services, safety and education. It is with this common language that carriers can finally build long-lasting and trusted relationships through personalized engagement. But the language must be transparent and simple to understand. It is our responsibility to translate largely complex insights into accessible and clearly defined opportunities for the customer.
Inside of our organizations, and with each passing day, cultural changes and technology are allowing our own data literacy to reach new heights. Consequently, a group of insurers can confidently claim that they are indeed data-driven, data-intelligent and incubators of a common culture that encourages data to be the guiding light.
This whitepaper looks at carriers and individuals that subscribe to data as the key driving force behind intelligent decision-making within an insurance organization as well as a vital tool in developing improved customer experiences. Their quest is 'in action.' It's happening right now. And I'm grateful to the contributors for agreeing to share their experiences.
Identified by many as one of the most customer-centric entities in the insurance ecosystem, due in part to their niche knowledge in terms of underwriting and customer needs, MGAs (Managing General Agents) are experiencing a period of positive development and growth, despite unfavourable (but improving) market conditions.
The community is flourishing, finding key differentiation to spark carrier interest, and demonstrating a superb ability to meet broker and customers’ needs. But this is not to say MGAs can take their eye off the ball. The carrier-MGA relationship can go in several different directions, as we will see in this whitepaper.
If we are able to park the question of healthy Ultimate Loss Ratios, one can identify a number of key circumstances and attributes that exist inside of a successful carrier-MGA partnership. Beyond necessities of capacity and genuine differentiation on the MGA's part, there must be absolute trust and transparency; actuarial talent on both teams, a sense of realism in fledgling years, but above all, space and freedom to get on with it in the good times, and to access help in the not so good times.
It is a fascinating relationship in which non-conventional carriers are breaking new ground by empowering MGAs like never before.
Thank you to the MGAA (Managing General Agents' Association) and Accelerant for their contributions, As we all pick up the pieces post-pandemic, I'm looking forward to seeing this community continue to innovate and work collaboratively.
Enjoying the content? Join The Lighthouse Collective and receive quality content pieces direct to your inbox before anyone else! It's free, so what's stopping you?