The rise and rise of the MGA

Megan Bell, Director of Marketing, London MGA Falvey Insurance Company describes how the company’s growth and success has shown that the MGA model works and has a bright future in the marine insurance market

From the humble beginnings of Falvey Cargo Underwriting as a managing general agent (MGA) 25 plus years ago, to its evolution into Falvey Insurance Group as it stands today, we have witnessed the transformation in attitudes and perception of the MGA.

THEN…

In the early days, there were far less insurance binders in the marine insurance market. The opportunity was more common for general, property & casualty property risks. The way of conducting business was also much different. Business came to the Box, no one was marketing themselves – this was a new concept.

There was nearly no mention of positioning oneself for growth and winning business. A Lloyd’s underwriter once told someone at Falvey, “You mean you actually go out and sell!?” MGAs were merely seen as an alternative distribution channel.

NOW…

The perception of MGAs has improved in time as a result of their ability to adapt to the ever-changing needs of customers and more importantly perform, for the betterment of capital providers.

While insurance companies change their interest and strategies, MGAs offer stability to the market by their ability to interchange the insurance companies that back them. This allows the MGA to survive through various cycles of the insurance market.

Additionally, MGAs are a great platform for developing digital processes and new technologies. These are particularly well received in today’s market of providing a winning customer experience. MGAs that invest in technology offer a solutions-focused advantage to some of the common challenges they face in cost, administration, and resources.

Today, MGAs are developing, or are partnering with third parties, to offer solutions for claims management, self-service payment, customer service, and more.

THE FALVEY MODEL

In the case of Falvey, our MGA established a significant presence in a niche market. An MGA “MGAs are a great platform for that is a specialist in its field knows the ins and outs and is a valuable contact developing digital processes and new that can be trusted to understand the risks and set premiums accordingly. technologies. These are particularly well

This type of specialisation offers underwriters the opportunity to enter received in today’s market of providing a space without the need for significant infrastructure. By already having a winning customer experience. MGAs experience, processes, systems licenses, and staff for a particular class that invest in technology offer a of business, they offer insurers the ability to try different products in solutions-focused advantage to some different regions without taking on the investment themselves. of the common challenges they face in

Falvey has also made significant investment in technology and innova- cost, administration, and resources.’’ tion. Our proprietary technology has afforded us a place in the forefront of Megan Bell, the market by delivering state-of-the- Falvey Insurance Group art systems that have vastly improved efficiency.

Proprietary software automates every aspect of the quote, bind, issue, claims/recovery, invoicing, loss control phase. This is done all in real time, all in one system, with the ability to share information on a hierarchal basis internally and externally with brokers, carriers and reinsurers. This makes the business transparent to all parties involved, while requiring less administrative help to process. The system helps track portfolio profitability with customizable reports and gives the ability to drill down to individual vessel type/commodity, brokerage firm/individual broker, line of business, or by individual underwriter. FASTER PAYOUT Most recently, the online claims filing process was overhauled. Customers can now file a claim in under 10 minutes by answering a series of guided questions. The new process reduces back and forth between Falvey and the customer and accesses more upfront information, which leads to quicker turnaround time and faster payout.

The biggest innovation uses API technology to fully integrate with our customers to get real-time information from their systems and issue instant certificates for coverage.

Falvey has embarked on an amazing use of analytics incorporating live information on the Covid-19 outbreak, overlaying with underwriting data. This provides a “Covid Risk Index” on all accounts which allows our underwriters to proactively reach out to accounts, and help the underwriter make decisions. With this information, Falvey can report details back to our supporting syndicates on the impact to the business. Above all else, Falvey has upheld its Mission Statement to make a profit for our underwriters. Falvey is an entity constantly working towards improvement to ensure the best possible experience for our customers and valued partners. Our underwriting service and product innovation work together, positioning our MGA to be the best in the market. STABILITY Our underwriting results speak for themselves. Falvey has demonstrated underwriting stability, profit to our partners, and increased gross written premium for the past 10 years – all despite turbulent market conditions. Product innovation includes an overhaul of Falvey Systems, that serves as the internal and external interface for all underwriting data. Last updated in 2016, the system is now much more robust, efficient and intuitive. It also integrates with DOMO, bringing valuable data insights to our staff and clients.

Falvey Shippers Insurance, a division of FIG, offers transactional shippers interest insurance via API. The API allows for a one-click to access a certificate of insurance for high-volume shippers. This product has become the industry-leading integrated, gateway, and batch reporting solution. In 2020, they will have handled more than 500,000 transactions.

Claims intake innovation allows customers to file claims within minutes, by answering a short series of questions. The new process is the first of its kind in the cargo insurance market.

Moving into the new decade, FIG continues to deliver our assureds, brokers, and security partners our promise of service and results. LOOKING AHEAD The perception of the MGA has evolved and will continue to evolve to maintain growth. The most successful MGAs are integrated and can provide a multitude of solutions relevant to underwriting.

There are other external factors that will affect the evolvement of MGAs, especially considering the current conditions of the impacts of COVID-19, the “Great Resignation” and the ability to find and retain talent, the frequent entrants of new InsurTech into the market and more.