How Insurance Software Helps MGA CFOs in Daily Challenges

Previously, we have analysed what are the challenges of Underwriters and MGA Managers and how insurance software can help to overcome these. This time, we will take a look at the benefits insurance software offers for MGA CFOs in overcoming daily challenges. 

The most critical tasks on the hands of MGA CFOs include accurate budgeting, reporting, and forecasting. CFOs cannot successfully manage these with old-school manual methods, without efficient insurance software.  

 

Main Challenges at the Hands of MGA CFOs 

In addition to MGAs’ decision on adopting novel insurance software, the regulators have an essential impact on the level of digitalisation. If they don’t support the overall digital transformation and work on paper trails, it holds back the entire industry. In these conditions, a challenge to overcome when implementing insurance software is integrating two systems - the historical and the new one. It also requires big investments and means quite a lot of lost production during the transition period. More systems to work with will eventually increase attrition rates of the workforce. 

Another concern from a CFO’s perspective is that upon implementation of insurance software, MGAs often don’t focus on the system’s financial capabilities and deliverables, whereas a lot is spent on an underwriting platform.  

Other most common challenges familiar to MGA CFOs are to: 

  • ensure that customers’ debts are paid on time and turn it around to settle Insurers within deadlines; 
  • resolve agent queries and supply relevant documents to validate amounts due; 
  • manage and monitor the cash flow and produce flawless management accounts at the end of the month. 

 

Insurance Software to Help Overcome the Challenges of CFOs 

Insurance software can definitely help overcome these challenges. As we interviewed several MGA CFOs, there are plenty of opinions to prove the point.   

Single Insurance Platform for Accounting and Underwriting 

MGAs try to achieve efficiency by merging insurance processes into one system, which is what most of their employees expect - less systems means less errors and headaches. When it comes to integrating underwriting and accounting to the same platform, it can be virtually impossible due to differences in reporting requirements of accounting and regulatory frameworks in various countries. In addition, all insurance software providers cannot fulfill the required designs. Whereas discovering and informing about such anomalies should be the responsibility of the provider, not the MGA.  

“The biggest issue is that software companies tend to overpitch. They try to leave an impression that their product is designed in a certain way, but as it turns out later, they are pressured to fit in the customer requirements to close the deal.”

- Lavnish Nayar, Finance Manager at CHES Special Risk 

This demonstrates how important it is to find a good partner and that a software would deliver what it’s intended for. Not all insurance software providers can bridge this gap, but they certainly help MGA CFOs to some extent in solving complex issues.  

Proper insurance software can still bring the benefits and improved performance thanks to merging underwriting and accounting to a single platform. This enables MGAs to limit their employees from using both systems and is a true time-saver. During the setup of an insurance administration system, employee involvement helps in identifying potential gaps. For example, introducing the entire framework of integration to the team who processes invoices in the underwriting software and providing a list of “dos and don’ts” to the team will help in the long run.  

“With the ability to understand, implement, and solve 80% of incoming complexity, the remaining 20% is often met.”

- Lavnish Nayar, Finance Manager at CHES Special Risk 

Team engagement enables MGA CFOs in identifying the issues that Underwriters meet in their daily job and in the Broker network. This proves that the modern role of CFOs is not limited to only finances, it is closely related to operations, making CFOs often wear a COO’s hat.  

Flawless Customised Reporting in a Click 

In addition to using a single insurance software for underwriting and accounting, custom reporting functionalities are key in making the life of MGA CFOs easier. 

Configuring, downloading and forwarding reports manually can be annoying - it can be a 10-minutes struggle. CFOs should definitely spend their time on more meaningful tasks. Whereas you could turn it into a 20 second flow with flexible, full-cycle insurance software.  

 “Key reports are a vital tool in accounting and financial reporting. Being able to produce accurate financial data at a click of a button is a must. The ability to see where we are with debtors and insurer creditors at any specific period is essential in financial management and planning.”

- Maxine Owen, Finance Manager at Renovation Underwriting  

CFOs are interested in creating accurate reports quickly. Using insurance software that has proper reporting functionalities, different bordereaux can be created and sent in a couple of clicks. With a solution like Insly, CFOs can design various types of reports – from risk and payment bordereaux, broker statements, loss ratio reports, payments outstanding, etc.    

  “Our current software Insly has a broker statement function that is invaluable for us. We can run a series of statements to be issued at the start of each month. Our software can batch record broker receipts which is a fast and efficient way of recording payments in.”

- Maxine Owen, Finance Manager at Renovation Underwriting  

It’s important for MGA CFOs to pay attention to which functionalities are actually covered by insurance software. Can you integrate reports to your accounting software and business intelligence (BI) tools that would enable a seamless data flow into your general ledger? Some software providers offer simple invoice creation while others provide double-entry ledgers for fully automated accounting. For example, Insly enables integrations to well-known BI tools like Microsoft Power BI or Amazon QuickSight. Find out more about which accounting functionalities you should pay attention to when choosing insurance software 

 

The Biggest Opportunity Insurance Software Provides to MGAs 

MGAs live and die by the quality of their trading platform. Well-designed insurance software will provide enormous opportunities for MGAs. The catch is in engaging skilled professionals in building a trading platform: 

  • to ensure a smooth and easy customer user experience. A system that is error-prone and difficult to use will result in reputational damage; 
  • since these systems are meant to increase efficiency. If insurance software is built and set up poorly, efficiencies will not materialise and too much resources will be wasted on keeping the system functional. 

The best that insurance software can provide for MGAs is an intuitive platform which is easy to use, maintain, and develop. The provider must also be available, helpful and efficient given the critical nature of their product. If the user experience is smooth and easy, customers keep coming back. If everything works as it should, MGAs can focus on business development rather than fire-fighting.  

“I believe the functionality of the Insly product and service comes close to achieving this. Certainly much, much closer than other providers we have had experience with.”

- Matthew Dover, Head of Underwriting and Compliance at Renovation Underwriting   

All major functions for the Insurer are performed by MGAs. That is why having a one-stop-shop solution for all workflows is the biggest opportunity insurance software can provide. An integrated insurance platform that covers all aspects of rating, policy administration, claims, billing, and digital applications empowers MGAs to quickly take advantage of emerging risks.   

“MGAs form an integral part of the insurer network. Thanks to great minds working at MGAs, it is both a money and a risk saver to a lot of claims.” - Lavnish Nayar, Finance Manager at CHES Special Risk 

Most MGAs operate in highly competitive and constantly evolving markets. So, insurance software must support MGAs’ international business endeavours, since it gives MGAs the opportunity to expand and grow 

Using insurance software can improve performance and save the day for MGA CFOs. Saving time and money thanks to a single insurance platform or creating instant accurate reports are just a few advantages. Take the first step already today and reach out to our team to see how we can help you!

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