If you work in the insurance industry, you have likely heard of managing general agents. These professionals are key assets in the insurance industry. They provide expertise and exception services for insurance companies, brokers and agents alike. If you fall into one of these categories, these are some signs that you may want to work with an MGA.
You Want To Expand
You’ve probably heard it said that if you need consistent growth to succeed in business. If you aren’t growing, you are likely stagnant or losing market share. Therefore, you need to find new ways to grow your business.
When you work with an MGA, you can enter new markets by offering new products to your existing and future clients. You can also find clients in areas where you don’t have offices, such as rural communities and small towns. You may not want to set up an actual office there due to the expense. Fortunately, an MGA insurance company may already serve that community. You can have access to all the markets, including global markets, that your MGA services.
You Want To Reduce Your Risk
In insurance, you consistently evaluate risk. In fact, you base your clients’ premiums and payouts on the assumed risk you take by insuring them. When you want to test new markets, the risk is even higher. You may not know whether the market can sustain itself and you or if the expenditures of entering it are worthwhile.
MGAs already work in markets that you may contemplate. They also reduce your risks through their extensive underwriting process. In a sense, they take on the risk in your place.
You Want To Streamline Your Underwriting Process
Your business thrives when you gain efficiencies. You need your processes to be the most efficient possible. Sometimes, you can achieve this through technological advancement, but you may find that you cannot gain efficiencies in areas that technology cannot solve. For example, it can take time to learn about new insurance products.
Fortunately, MGAs offer the efficiency you need, especially in your underwriting process. They understand the risks of products you don’t typically deal with. They also have access to technologies that speed up their processes. You can make your company more agile and gain faster turnarounds when you work with MGAs.
You Want To Differentiate Yourself From Your Competition
To gain market share and expand your company, you need to differentiate yourself from your competition. Fortunately, many insurance brokers, companies and agents provide the same or similar coverage options to their clients. This makes differentiation a bit easier.
MGAs are well-versed in many different types of insurance, including more customized policies. They are niche businesses. If you work with MGAs, you can leave behind the one-size-fits-all approach and begin to customize policies for your clients. You will have someone with expertise in various markets on your team, creating a reputation for innovation and customer service.
MGAs are key players in the insurance markets who use their expertise to bridge gaps and act as liaisons between insurance companies, agents, brokers and sometimes clients. You can build a strategic, synergistic partnership with MGAs and gain a wide variety of benefits that give you advantages in your market.