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31-Aug-2022 13:28:19 5 min read

How The Right System Can Springboard An MGU To Success

Tech that takes the administrative burden out of your hands frees you up to do what you do best – delivering returns for you and your capacity providers.  

The outlook for Managing General Underwriters (MGU) with the right technology is bright. MGUs remain leaders in specialist lines, enabling capacity providers to diversify into areas they may otherwise struggle to reach. Plenty of capacity is still available, even in these hard market conditions. Many are also blazing a trail in InsurTech with their innovation. However, running an MGU has its challenges. The administration demands of catering for multiple capacity partners and multi-layered deal arrangements can be onerous.  

Successful MGU operations are underpinned by reliable technology making everyday tasks, like reporting and accounting, effortless. This allows them to focus on writing the right risks at the right price and delivering performance to the capacity provider. The name of the game is to work smarter, not harder. Here are four ways the right technology can drive success for MGUs:  

 

Grow your business with confidence  

An MGU needs technology that provides the foundations for profitable growth. That means harnessing technology to deliver quick, accurate and efficient data collection and validation with a system which is automated, scalable and configurable. An ambitious MGU with a global appetite needs a system that seamlessly runs across multiple different partners, programmes and lines. It should run across a basket of currencies. And easy, semi-automatic renewals are a must. 

 

Reduce frictional costs and bolster efficiency  

MGUs’ accounting and monthly reporting requirements are complex and demanding, incorporating all risks placed, the limits, how much premium is accepted for each risk, the management fee taken, dealing with gross and net, and finally claim movements. The MGU may participate in multiple layers of a programme with different capacity providers. Relationships with providers are often complex with multiple parties often being involved in a single transaction. That’s a lot of information which needs capturing accurately and with ease. Managing these processes and providing capacity providers and intermediaries the visibility they need has historically been resource-heavy.  

MGUs need a reliable solution that manages all these calculations automatically, feeds information to partners with pinpoint accuracy and does all the administrative heavy lifting with minimal effort. Achieving this saves time and money, freeing up human talent to concentrate on servicing customers and business growth.  

 

Instil confidence for your capacity providers  

A big part of being an MGU is demonstrating competence. You might be writing good business, but if your reporting shows errors and the numbers fail to stack up, you’re in trouble. Reporting should be consistent, on time and automated. Today’s tech-savvy MGUs share data seamlessly, even in real-time, with their capacity providers. Their platforms will automatically validate the data using predetermined rules – pushing responsibility for data quality to the underwriter handling the risk and mitigating the risk of human error and inconsistencies. Approval workflows, underwriting rules and agreement limits should also be built into your system giving peace of mind and saving time. An MGU that reports reliably breeds confidence, opening the door to renewed or increased capacity and also fresh capital backing across new product lines.  

 

Gain a competitive edge  

The insurtech landscape is evolving rapidly and MGUs must have confidence their technology partner can keep them ahead of the curve. Those with legacy systems or who still rely on spreadsheets for data collection and reporting are quickly falling behind. Today’s MGU must be able to gather, analyse and report on data rapidly. Using digital data transmissions and portal front-ends, MGUs would be able to slice and dice this data in ways that enhance decision-making and bring value and comfort to capacity providers. By embracing digitalisation and real-time data, forward-thinking MGUs can be more agile, transparent, responsive and efficient, leaving competitors behind.  

 

Eurobase understands what it takes to support a successful MGU. Synergy2 is a scalable, end-to-end platform for managing the full lifecycle of your (re)insurance operations, from client management to underwriting, claims, accounting and reporting, ensuring your business is primed to deliver the returns your capacity providers expect, with maximum efficiency.   

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