ANALYSIS - VALUE MOMENTUM
HARNESSING DIGITAL TECHNOLOGY FOR INCREASING THE VALUE OF MGAS AND PROGRAM ADMINISTRATORS
T
he value and purpose of Managing General Agents has varied throughout the years and today is as high as ever. MGAs originated 100+ years ago from east coast insurance companies expanding to the west without having to open offices there. As time progressed, the carriers did expand their resources – diminishing the roles of the MGAs. Today, the role of MGAs has expanded. MGAs are typically vested with underwriting, binding, issuance and policy life cycle authority from the carrier(s). Most are involved in specialty lines and possess the underwriting expertise. MGAs benefit carriers with their
expertise that may not be available within the company’s offices and would be more expensive to develop in-house.
at an early age’. This Millennial generation (born in the last two decades of the 1900s) now is the largest living generation in the US, with significant buying power Some MGAs and Program and market influence. Millennials Administrators are striving to are the first generation to include increase their worth in the insurance people who don’t remember a time value chain. Some are seeking to before the internet. diversify by developing new niche markets and implementing rate- According to the US Census quote-bind and policy lifecycle Bureau, the Millennial Generation processes that are in line with their – at 92M – is currently the largest customers’ needs. So who are the demographic of the US population. target customers and what are These Millennials have grown up in their needs? a time of rapid change, giving them a set of priorities and expectations THE ADVENT OF DIGITAL NATIVES sharply different from previous The world has changed. The generations. By 2020, 33% of Oxford Living Dictionary defines small businesses will be owned a digital native is a ‘person born by Millennials and 60% will be or brought up during the age of owned by Millennials & Gen Xers digital technology and is familiar combined. Millennials constituted with computers and the internet
See Harnessing Digital Tech Pg 33
ABOUT THE AUTHOR: Abhijeet Jhaveri is Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s software-as-a-service business targeted at the MGA, Program Administrator and Coverholder markets. Abhijeet and his team works with MGAs, Program Administrators and Coverholders to deploy ValueMomentum’s iFoundry rating software with support for ISO, NCCI, AAIS and proprietary rate plans and extend these to agents, customers and employees with ValueMomentum’s BizDynamics Digital Experience Solution and App2Data ACORD forms processing Solution. 22
MARCH-APRIL 2017
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