{"id":11398,"date":"2021-03-16T15:07:24","date_gmt":"2021-03-16T13:07:24","guid":{"rendered":"https:\/\/insly.com\/?p=11398"},"modified":"2023-10-10T12:01:33","modified_gmt":"2023-10-10T09:01:33","slug":"global-digitalisation-of-insurance-industry-is-backed-by-insurers-and-mgas","status":"publish","type":"post","link":"https:\/\/insly.com\/en\/blog\/global-digitalisation-of-insurance-industry-is-backed-by-insurers-and-mgas\/","title":{"rendered":"The Global Digitalisation of Insurance Industry Is Backed by Insurers and MGAs"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div><p>[vc_row css=&#8221;.vc_custom_1615376917720{margin-bottom: 5% !important;}&#8221;][vc_column][vc_column_text css=&#8221;.vc_custom_1615335827004{padding-right: 10% !important;padding-left: 10% !important;}&#8221;]<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">COVID-19 <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">has had <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">negative <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">implications on <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">capital availability amon<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">g <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">half of <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">insurers a<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">nd MGAs. <\/span><\/span><\/span><span style=\"color: #000000;\"><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">This means t<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">ougher competition<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">, struggling<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">\u00a0and a hardening marketplace, especially for<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\"> those who <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">don\u2019t have enough funds <\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">or\u00a0<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">don\u2019t\u00a0<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">add<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">\u00a0business<\/span><\/span><span class=\"TextRun SCXW100154980 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100154980 BCX0\">\u00a0value.<\/span><\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center; margin-bottom: 0px;\"><strong>How will COVID-19 impact capital availability?<\/strong><\/p>\n<table style=\"height: 315px; width: 100%; border-collapse: collapse;\">\n<tbody>\n<tr style=\"height: 367px;\">\n<td style=\"width: 50%; height: 315px;\">\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-11932 size-medium\" style=\"margin-bottom: 0px; margin-top: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/04\/Picture5.svg\" alt=\"Insurers\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<\/span><a style=\"font-size: 12px;\" href=\"https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura\" target=\"_blank\" rel=\"noopener noreferrer\">Clyde&amp;Co, 2020<\/a><\/p>\n<\/td>\n<td style=\"width: 50%; height: 315px;\">\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11953 size-medium\" style=\"margin-bottom: 0px; margin-top: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/04\/Picture4-1.svg\" alt=\"MGAs\" width=\"300\" height=\"300\" \/><\/p>\n<p>&nbsp;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin-bottom: 0px;\">Also, setting up a new business is believed to be much harder among most insurers and MGAs.<\/p>\n<table style=\"height: 248px; width: 100.446%; border-collapse: collapse;\">\n<tbody>\n<tr style=\"height: 259px;\">\n<td style=\"width: 100%; height: 248px;\">\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"aligncenter wp-image-11474 size-medium\" style=\"margin-bottom: 0px;\" role=\"img\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture3.svg\" alt=\"\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<\/span><a style=\"font-size: 12px;\" href=\"https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura\" target=\"_blank\" rel=\"noopener noreferrer\">Clyde&amp;Co, 2020<\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">In fact, main <strong>priorities for insurers to support financial stability<\/strong> over the next year are <\/span><span style=\"color: #000000;\">implementing technology to enhance efficiency and rationalise compensation and headcount.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1615892044962{margin-right: 15% !important;margin-left: 15% !important;background-color: #ffffff !important;border-radius: 35px !important;}&#8221;][vc_column css=&#8221;.vc_custom_1615893618659{margin-bottom: 2% !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1615892192820{padding-right: 5% !important;padding-left: 5% !important;}&#8221;]<span style=\"color: #ff6600;\"><strong>43%<\/strong><\/span> <span style=\"color: #000000;\">of insurers implement technology to enhance efficiency in Europe<\/span><br \/>\n<span style=\"color: #ff6600;\"><strong>38%<\/strong><\/span> <span style=\"color: #000000;\">of insurers implement technology to enhance efficiency in Asia-Pacific<\/span><br \/>\n<span style=\"color: #ff6600;\"><strong>44%<\/strong><\/span> <span style=\"color: #000000;\">of insurers rationalise compensation and headcount in North America <\/span>[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1615893651819{padding-top: 2% !important;padding-bottom: 2% !important;}&#8221;]<span style=\"color: #000000; font-size: 12px;\">Source:<\/span><a style=\"font-size: 12px;\" href=\"https:\/\/www2.deloitte.com\/xe\/en\/insights\/industry\/financial-services\/financial-services-industry-outlooks\/insurance-industry-outlook.html\" target=\"_blank\" rel=\"noopener noreferrer\">Deloitte, 2020<\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column css=&#8221;.vc_custom_1615480346110{margin-bottom: 5% !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1615480462376{padding-right: 10% !important;padding-left: 10% !important;}&#8221;]<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Due to a tight financial situation, <strong>remarkable overall cost reductions will be expected over 2021, globally<\/strong>.<\/span><\/p>\n<table style=\"height: 316px; width: 100%; border-collapse: collapse;\">\n<tbody>\n<tr style=\"height: 334px;\">\n<td style=\"width: 100%; height: 316px;\">\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11580 size-medium\" style=\"margin-bottom: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture4-1.svg\" alt=\"Cost reduuction\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<\/span><a style=\"font-size: 12px;\" href=\"https:\/\/www2.deloitte.com\/xe\/en\/insights\/industry\/financial-services\/financial-services-industry-outlooks\/insurance-industry-outlook.html\" target=\"_blank\" rel=\"noopener noreferrer\">Deloitte, 2020<\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000000; text-align: justify;\">How to survive? Insurers are actively shifting towards<\/span><strong style=\"color: #000000; text-align: justify;\"> implementing digital transformation plans<\/strong><span style=\"color: #000000; text-align: justify;\">, with Europe taking a strong lead. Nearly all of them are implementing or planning to enhance digital capabilities over the year.<\/span><\/p>\n<table style=\"height: 258px; width: 100%; border-collapse: collapse; margin-bottom: 0px;\">\n<tbody>\n<tr style=\"height: 276px;\">\n<td style=\"width: 100%; height: 258px;\">\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11594 size-medium\" style=\"margin-bottom: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture6.svg\" alt=\"Digital Transformation plans\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<\/span><a style=\"font-size: 12px;\" href=\"https:\/\/www2.deloitte.com\/xe\/en\/insights\/industry\/financial-services\/financial-services-industry-outlooks\/insurance-industry-outlook.html\" target=\"_blank\" rel=\"noopener noreferrer\">Deloitte, 2020<\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong style=\"color: #000000; text-align: justify;\">Increased investments in technology<\/strong><span style=\"color: #000000; text-align: justify;\"> clearly support digitalisation. Looking at the average operating-cost breakdown by functions, there\u2019s an increase in IT investments in both P&amp;C and life insurance by 4% and 3%, accordingly, <\/span><strong style=\"color: #000000; text-align: justify;\">totalling to about 25% of all costs<\/strong><span style=\"color: #000000; text-align: justify;\">.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%; height: 278px;\">\n<tbody>\n<tr style=\"height: 278px;\">\n<td style=\"width: 100%; height: 278px;\">\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11607 size-medium\" style=\"margin-bottom: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture7.svg\" alt=\"Operating cost breakdown\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<a href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/the-insurance-switch-technology-will-reshape-operations\">McKinsey, 2019<\/a><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">As technology is riding the wave, it is starting to affect partnerships, as <strong>41% of insurers will only partner with MGAs that have strong systems<\/strong>. Even more, 71% of MGAs and 51% of insurers considering technology as an important factor in business relationships.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%; height: 349px;\">\n<tbody>\n<tr style=\"height: 349px;\">\n<td style=\"width: 50%; height: 349px;\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11615 size-medium\" style=\"margin-bottom: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture8.svg\" alt=\"%41 Insurers partner MGAs\" width=\"300\" height=\"300\" \/><\/p>\n<p><span style=\"color: #000000; font-size: 12px;\">Source:<a href=\"https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura\">Clyde&amp;Co, 2020<\/a><\/span><\/p>\n<\/td>\n<td style=\"width: 50%; height: 349px;\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11618 size-medium\" style=\"margin-bottom: 0px;\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture9.svg\" alt=\"importance of technology\" width=\"300\" height=\"300\" \/><\/p>\n<p>&nbsp;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>96% of insurers and 84% of MGAs<\/strong> believe the shift to electronic placement and data standardisation will accelerate as a result of COVID-19<\/span> (<a href=\"https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura\">Clyde&amp;Co, 2020<\/a>).<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">At Insly, we have seen the<strong> take-off of digitalising insurance operations by automating sales and policy administration<\/strong>. This is backed by increasing use of our platform among insurers, brokers, and MGAs throughout the years, as well as a growing number of premiums written on our platform.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 50%;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11638 size-medium\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture11.svg\" alt=\"Brokers and MGAs Usig Insly\" width=\"300\" height=\"300\" \/><\/td>\n<td style=\"width: 50%;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11641 size-medium\" src=\"https:\/\/insly.com\/wp-content\/uploads\/2021\/03\/Picture10.svg\" alt=\"Premium written on Insly\" width=\"300\" height=\"300\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>If you need help in starting your road to digital transformation, feel free to reach out to get the best advice!<\/strong><\/span><\/p>\n<div class=\"buttons-container\" style=\"text-align: center;\"><a class=\"btn light-green-border medium radius animated animation-delay-1 book-a-demo, popmake-10953\" href=\"#\">Book a demo<\/a><\/div>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1615507039481{padding-right: 10% !important;padding-left: 10% !important;}&#8221;]<span style=\"color: #000000;\"><strong>References:<\/strong><\/span><br \/>\n<span style=\"color: #000000;\">Clyde&amp;Co, Proceeding with caution: A survey of MGA and insurance carrier opinion on the state of the MGA sector, 2020.<\/span><br \/>\n<a href=\"https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura\">https:\/\/www.clydeco.com\/en\/reports\/2020\/09\/proceeding-with-caution-a-survey-of-mga-and-insura<\/a><br \/>\n<span style=\"color: #000000;\">Deloitte, 2021 insurance outlook. Accelerating recovery from the pandemic while pivoting to thrive, 2020.<\/span><br \/>\n<a href=\"https:\/\/www2.deloitte.com\/xe\/en\/insights\/industry\/financial-services\/financial-services-industry-outlooks\/insurance-industry-outlook.html\">https:\/\/www2.deloitte.com\/xe\/en\/insights\/industry\/financial-services\/financial-services-industry-outlooks\/insurance-industry-outlook.html<\/a><br \/>\n<span style=\"color: #000000;\">McKinsey, The insurance switch: Technology will reshape operations, 2019.<\/span><br \/>\n<a href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/the-insurance-switch-technology-will-reshape-operations\">https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/the-insurance-switch-technology-will-reshape-operations<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row css=&#8221;.vc_custom_1615376917720{margin-bottom: 5% !important;}&#8221;][vc_column][vc_column_text css=&#8221;.vc_custom_1615335827004{padding-right: 10% !important;padding-left: 10% !important;}&#8221;] COVID-19 has had negative implications on capital availability among half of insurers and MGAs. This means tougher competition, struggling\u00a0and a hardening marketplace, especially for those who don\u2019t have enough funds or\u00a0don\u2019t\u00a0add\u00a0business\u00a0value. &nbsp; How will COVID-19 impact capital availability? Source:Clyde&amp;Co, 2020 &nbsp; Also, setting up a new [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":14114,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[23,78],"tags":[287,74,286,79],"class_list":["post-11398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ens-product","category-mga","tag-digitalisation-insurance-market","tag-insurance-mga","tag-insurers","tag-mga"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Global Digitalisation of Insurance Industry Is Backed by Insurers and MGAs - Insly<\/title>\n<meta name=\"description\" content=\"Main priorities for insurers and MGAs to support financial stability over the next year are implementing technology.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insly.com\/en\/blog\/global-digitalisation-of-insurance-industry-is-backed-by-insurers-and-mgas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Global Digitalisation of Insurance Industry Is Backed by Insurers and MGAs - Insly\" \/>\n<meta property=\"og:description\" content=\"Main priorities for insurers and MGAs to support financial stability over the next year are implementing technology.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/insly.com\/en\/blog\/global-digitalisation-of-insurance-industry-is-backed-by-insurers-and-mgas\/\" \/>\n<meta property=\"og:site_name\" content=\"Insly - Design &amp; 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