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ANALYSIS - VALUE MOMENTUM

THREE EXAMPLES OF MGAS WHO LAUNCHED NEW PROGRAMS IN WEEKS By Abhijeet Jhaveri

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BOUT THE AUTHOR: Abhijeet Jhaveri is Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s softwareas-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.

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SEPTEMBER 2017

rowth has taken the top spot amongst business issues driving investments in 2017, according to a Celent survey. To achieve growth, a key lever for MGAs, program administrators and cover holders is product innovation. In our interactions with insurers, we are constantly hearing their need for refreshing legacy products, tailoring products to attractive niche segments and developing new products to meet the needs of growing markets. According to a Celent research report titled “North American Rating Engines”, “insurers are looking to grow, differentiate themselves, navigate the regulatory environment, and do all of this efficiently.” Product Innovation & Management Refreshing legacy products is similar to your favorite smartphone company adding new features to their existing phones. Apple did this with iPhone 7 when it added Portrait mode to apply a depth-offield effect for beautiful pictures. Similarly, insurers are constantly adding new coverages like an Employment Practices Liability (EPL) for small businesses as part of TABLE OF CONTENTS

a BOP product. Tailoring products to attractive niche segments is another popular method to achieve growth. Here, as a niche writer, an MGA or Program Administrator may identify an underserved growing segment such as addiction treatment clinics that are growing in response to the opioid epidemic. Similarly, MGA s are also developing new products and the underwriting expertise to meet the needs of new risks like Cyber Liability and Drone coverage, Product development, implementation in IT systems and the role of bureaus such as ISO. However, launching or refreshing new products or programs is no simple task. There are several activities to be considered across the value chain. While each of the activities in the value chain have their own challenges – developing, designing products and underwriting guidelines and implementing these in MGA rating systems – in a timely manner can make all the difference in achieving the business objectives. Insurers, often adopt bureau based products such as those from ISO to serve as a starting point. This is to ensure that they are accessing See Programs in Weeks Page 22 www.chart-exchange.com

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