Just because a software platform was right for your MGA in the past, that doesn’t mean it will be forever. As an MGA grows and evolves, the complexity of its operations and demand on its resources can change significantly. However, MGA teams can often become so accustomed to how their software works, warts and all, that they fail to spot the signs that it is time for an upgrade.
Here are five unmistakable signs that your MGA has outgrown its platform.
1- You can’t launch products quickly enough
Rapid product development and innovation are vital to building a successful MGA, enabling you to respond to changes in the risk landscape or customer needs as they arise, opening up new revenue streams, and capturing new customer segments. If your current system takes weeks to get new products online, due to poor functionality, a lack of self-service tools, or insufficient support from your account team, you could be losing out on valuable business. The best software platforms can now get products online in a matter of days, or even hours, with minimum hassle, so upgrading could have a real and immediate business impact.
2- Slow quote turnaround times are losing you business
We live in an age of speed and convenience. Brokers and insurance customers expect to purchase insurance at the click of a button, so the speed of quote turnaround can make a huge difference to how many sales you convert. If your insurance software is holding up the quote process through overly complicated broker submissions, data rekeying, underwriting inefficiencies, or poor integration between systems, it is a sure sign your software isn’t serving your business effectively. Software should seamlessly integrate the entire quote turnaround cycle, making it easy and convenient for your broker partners and your in-house team. For example, Insly’s FormFlow enables brokers to submit quote details in any document format, and the system will automatically make the data available to underwriters in the right format. Modern MGA software also streamlines underwriting through AI-generated quotes for straightforward policies and ensures underwriters have all the information they need at their fingertips, including from third-party databases.
3- Finance and accounting errors and delays
Implementing efficient and accurate finance and accounting processes is often an afterthought for MGAs, but failing to have these in place can seriously hold your business back. Legacy finance and accounting systems can mean bill payment is delayed, partners become dissatisfied, and cash flow suffers if invoices aren’t being followed up on time. Added to that, your finance and accounting team is likely to become overstretched, or you’ll struggle to access the key finance and accounting metrics you need. If you’re noticing any of these symptoms, chances are a software upgrade could make all the difference.
4- You’re constantly devising workarounds
If your system doesn’t automatically carry out tasks you need, such as automatically transferring data to relevant partners, generating core business reports, or automating workflows, it probably means it lacks some key functionality or integration. Workarounds can become an accepted part of your day-to-day job, but over time, they add up to huge inefficiencies and a drain on resources, which are better focused elsewhere. Manual workarounds also increase the chance of administrative errors, which could impact the customer experience, partner relationships, and your ability to price risk accurately and profitably.
5- Increased headcount is impacting profitability
As a rapidly growing MGA with increasing demands on its operations, the temptation is often to hire more people. But before you post those job adverts, consider whether a software upgrade could be the more cost-effective answer. Too much hiring can lead to spiralling costs and falling profitability, whereas the right systems enable your existing team to handle more business, more efficiently, without the need to spend on hiring. While introducing better software will require investment, the cost is likely to be significantly less than recruitment and salary costs. For example, Insly client Accelerate Underwriting has just three underwriters to write nearly £20m of GWP, which would require around 12 underwriters in a business without an innovative system.
When you’re running a busy MGA, it’s easy to overlook the issues that are holding your business back from even greater growth and profitability. Equally, it can feel like sticking with your current software is easier than spending the time and money upgrading to an alternative. But investing in enterprise-grade software is now easier and more cost-effective than you might think, with flexible, low-code systems that can be implemented in a matter of weeks, with minimal upfront costs. So, if you’re seeing the signs that your current software is bursting at the seams, don’t ignore them. It’s your chance to build a more efficient, profitable, and scalable business for many years to come.
For MGAs and insurers seeking enterprise-grade software without the high cost, Insly is the low-risk partner proven to drive business growth. From underwriting and product development to our 100% accurate finance and accounting engine, plus innovative AI products, Insly’s flexible, end-to-end platform is built for the exact needs of insurers and MGAs. And with pricing linked to business growth, plus rapid setup, it helps you scale, without the financial risk.
