Find Out Why More Insurers Choose MGUs
The industry is evolving. Insurers should, too.
Demand for specialized knowledge is growing as insurance carriers work to gain access to new markets. To address this need, many insurers turn to a Managing General Underwriter (MGU) for specific expertise and specialized services. For insurance companies looking to expand into competitive markets, MGU insurance can offer the competitive edge they need to be successful.
What Is a Managing General Underwriter (MGU)?
An MGU is a specialized insurance agent or broker who works with an insurer. MGUs use their expertise to work as underwriters for professional liability insurance and surplus lines of insurance. However, in addition to underwriting, MGUs can perform a number of tasks, including:
Marketing- Binding
- Issuing
- Billing
- Claims Management
- Premium Collection
- Risk Management
The demand for these specialized services has continued to grow as more insurers partner with MGUs to help manage their business.
Why Insurers Partner with Managing General Underwriters
There are a lot of reasons insurers choose to work with MGUs. Here are just a few advantages:
Subject-Matter Expertise
As specialized insurance agents and brokers, MGUs bring expertise that may otherwise be lacking in an insurance firm. This expertise can help insurers streamline operations and expand into new markets they previously did not have access to.
Cost-Effectiveness
The expertise MGUs bring with them is not cheap to develop in-house. Many insurers choose to work with MGUs because it would be more expensive to develop the same underwriter expertise internally. By using MGUs, firms can save both time and money while delivering better service at the same time.
Increased Access
MGUs have relationships with a large network of retail and wholesale agents. They can leverage these relationships to the benefit of their clients. Therefore, by partnering with an MGU, an insurer can gain access to an extensive network. An MGU’s distribution network is one of the top benefits insurers cite when they choose to partner with an MGU.
Enhanced Risk Management
At the end of the day, MGUs have one goal: to increase your profitability. This means using their specialized knowledge to improve risk management strategies and services. With their specialized knowledge, MGUs are able to identify risk others aren’t—saving your time and your bottom line.
Growth Opportunities
Insurers looking for opportunities for growth will often partner with an MGU as part of their expansion strategy. MGUs can streamline the underwriting process and offer accelerated access to markets along with geographic and distribution expertise. This allows insurers to strategically expand and diversify while mitigating their risk and lowering their execution costs.
Managing General Underwriters will continue to play an important role as demand for their specialized services continues to grow. ProWriters proudly serves top wholesalers who can help you understand all of the different MGUs currently in the marketplace. Learn more about MGUs and the services they offer by speaking with a ProWriters expert today.
