MGA businesses, especially startups, were in the spotlight at ITC 2024. What does this fresh focus mean for the insurance market and technology innovation?
The theme at this year’s ITC Las Vegas Conference, “At the frontier of insurance innovation,” couldn’t have been more appropriate for the time we are all living in right now. There is no dispute that AI is revolutionizing insurance by enhancing efficiency and customer experience. However, it is the collaboration between all industry players that drives true innovation. Insurance MGAs are critical players in that equation.
MGAs in the spotlight
When speaking with conference attendees, a theme became apparent: MGAs were not just at the event to see. They were there to be seen.
MGAs have been active market participants for over a decade, growing consistently year-over-year. Now, many MGAs, specifically startups, are in a period of rapid acceleration. These organizations are searching for technology partners to boost distribution and scale operations. Now more than ever, they are embracing insurtechs to meet automation needs, with many opting to leverage tech partners over internal builds of AI technologies.
MGAs fostering insurance innovation
At the same time, solution providers recognize the role MGAs play in fostering innovation, especially in terms of product flexibility and customer engagement. Of the conversations the ReSource Pro team had at the event, several technology vendors expressed their intent to expand their MGA customer base and leverage ITC as a key platform to make new MGA connections, especially core system providers. Those that are traditionally focused on insurers are now offering solutions designed explicitly for MGAs with quicker time-to-market, flexible configurations, and seamless integrations with various third-party tools. And MGAs have an expanding appetite for core technologies, which is supported by ReSource Pro research earlier this year that shows MGAs are purchasing systems at an increasing rate, particularly suite and policy/billing configurations.
While several ITC sessions catered to MGAs focused on how they are leveraging AI and other advanced technologies to scale and fuel business, a few also emphasized the importance of delegated authority. In a panel session of executives across various segments moderated by AM Best, the discussion surrounded the importance of specialization in enhancing operational efficiencies and fortifying market stability. And even more important is the continued collaboration between MGAs and carriers to effectively manage complex and specialty risks.
Are we in the age of the insurance MGA?
Overall, our conversations with attendees at ITC Vegas 2024 signal a fresh focus on the MGA market as one rife with opportunities. We expect this momentum to continue through 2025, with MGAs making more technology decisions and more vendors tailoring solutions to their unique needs. For more information about the insurtech MGA space, stay tuned for upcoming research from ReSource Pro in collaboration with InsurTech NY, which will dive deep into the dynamics driving startup MGA business today.
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