So you want to shout at your insurance capital?
An effective MGA is essentially an outsourcing of the insurer's underwriting unit. A mutually beneficial relationship drives long term success for insurers, MGAs and the end customers.
Just like any relationship, communication is key.
Here are my three tips to what you should be looking to do each month to stand out with your communications to the insurer:
1. Be honest about your progress towards goals
We all have good and bad days. Don't hide them, be open and transparent. Early warnings to your insurer will ensure that no surprises will occur. And importantly, it demonstrates you have control of your business.
2. Tie short term monthly goals into the long term portfolio objectives
An insurer wants you to deliver a portfolio, one which meets the objectives as agreed in your binding authority agreement. So track your monthly progress towards these.
And don't shy away from talking an insurers language. Combined operating ratios, rate change and retention success are all good metrics to discuss.
3. Highlight areas where you have improved from last month, and what you are going to do to be better next month
Distribution and sales not going to plan. Fix it.
It takes too long to issue documents. Fix it.
Pricing model is too blunt. Fix it.
Insurers love active MGAs which develop, learn and fight to improve. An MGA has an agility which the large insurers just cannot match. Demonstrate this agility with constant improvement, and tell them about it.
If there is bad news, look to fix it. And quickly.
Do you fancy knowing more about how Mulberry Risk can help your business, please contact us.