Category : Business Insurance
Independent insurance brokers looking to weather cyclical market storms can query managing general agents. These specialized insurance agents receive authorization from insurers to appraise the risk of property, casualty, or other coverage opportunities as well as assess fees by proxy without prior insurer approval. This simplified and symbiotic underwriting process is one of the benefits of working with an MGA.
Insurer Benefits of Working With an MGA
MGAs spend hours learning to be indispensable to their insurance company affiliations. Objectively, agents study the end-to-end office functions that efficiently bring business to the carrier. They then perform said tasks, including but not limited to the preparation and fulfillment of insurance quotes, claims, and clearances, significantly offsetting the workload of the insurance carrier. A localized MGA also presents a gift for the insurer in the form of expanded suscriber reach into new geographies.
Agent Benefits of Working With an MGA
Producers can use the MGA/Insurer relationship to their benefit. Clients concerned with future compensation of their valuables need only wait a brief while before the MGA confirms an accurate quote. How? A general agent’s databases of coverage plans are conveniently digitized, and quotes need not pass through too many hands, delivering value for a retail broker. The aggregated plans also allow the agent to reduce prices by comparing competing rates.
Once they earn enough trust to underwrite risks on behalf of an insurer, MGAs return the favor by prioritizing the financial equity of the insurer and dutifully serving their stakeholders.