Rating Systems for MGAs

Evaluating Rating Systems for MGAs and Program Administrators

As any Managing General Agency (MGA) or Program Administrator knows, they serve the agency and broker distribution system by providing them with programs for niche markets and also specific product lines that they often do not have direct access to. This is because MGAs have specialized products with rating systems developed primarily for their use and the programs they have created.

 

In fact, an off-the-shelf commercial lines insurance rating systems designed for a retail agency doesn’t work for MGAs and the specialty niches they serve. They need a solution designed for them that is easy to customize in order to address their particular needs. They require software that can be integrated with their administration systems, a platform that is easily updated with carrier and ISO rating changes, thus allowing insurance products to be brought to market fairly quickly.

 

Customizing a system requires time and effort

 

MGAs often have to either work with a package that is not designed for them and customize it (which takes a lot of resources in both in time and money), or they may choose to develop a rating system from the ground up, which may also be rather costly. Unfortunately, many of the existing insurance rating systems are not compatible with an established MGA system, so there is double entry involved, which means extra work is involved.

 

There is a solution with insurance rating software that has been developed specifically for MGAs and is integrated with existing policy administration systems. These systems for MGAs are designed to facilitate the rating and submission process and allow them to get a quote online quickly and easily.

 

Once the information is obtained, rated, quoted and bound, an MGA doesn’t want to spend the time duplicating the data into an admin system. That’s why integration is so critical, streamlining the process and offering staff and financial efficiencies resulting in less time spent. When changes have to be made due to updates by ISO or the carrier itself, an agile rating system will allow for this to occur automatically.

 

Researching what is available in the insurance market when it comes to rating is vital in order to implement a package that is designed for MGAs and Program Administrators and that can be further adapted for their specific needs.

 

photo credit: swisscan via photopin cc

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