An MGA, meaning a managing general agent or managing general agencies, plays an important role in the insurance industry. So what does a general agent do? These are specialized insurance agents that have been granted underwriting authority and can negotiate contracts on behalf of an insurer. Selecting the most competent and qualified MGA can have an enormous effect on your client’s business or organization.
But what is the difference between an MGA and a broker? MGAs are more specialized than independent agents and have underwriting authority granted by insurance carriers.
You may be wondering: What are the benefits of working with an MGA?
MGA vs. Broker
At times, independent insurance agents may have clients who require specialty insurance that a retail agent is unable to get from a standard insurer. This is where they may need an MGA, meaning they need someone with expertise, influence, and relationships with carriers to compare providers and find the best insurance products for that specific risk.
As an MGA, ProWriters has taken the complex process of comparing and purchasing both cyber and business insurance (such as professional liability insurance) and simplified it. This allows insurance agent brokers to have multiple options when selecting the professional and management liability insurance that best fits their client’s needs.
Due Diligence: Finding the Best MGA
The right MGA will help provide your clients with coverage that could have an enormous impact on their future. However, not all MGA’s are created equal. Here, we’ll break down eight qualities to look for in order to find the MGA who can best serve your clients.
For retail insurance brokers, looking for a successful history is an important step in vetting an MGA, meaning: experience matters. MGA’s use their influence and relationships with carriers to write more specialized coverages then a broker can provide. ProWriters offers more than 20 years of experience as a leading authority and is considered one of the top wholesale insurance brokers in the industry.
By coverage, we mean nationally. Finding a cyber MGA who is licensed in all 50 states allows you to serve all of your clients. ProWriters has national coverage and can provide both admitted and surplus lines policies. All United States cities are considered and ProWriters requires no post-acquisition relocation or re-branding. Start-ups and lift-outs are also considered.
Every client carries individual risk and their insurance needs are different, so it’s important for MGA’s and insurance brokers to be flexible and tailor to these specific needs. ProWriters offers flexibility on structure, earnout, and other specific deal terms (given appropriate valuation and representations). ProWriters also offers flexibility on post-acquisition executive titles and reporting lines.
In our rapidly evolving world, efficiency is key. Every day that your clients continue uninsured, they’re facing substantial risk. An efficient MGA allows brokers to do their job well and find their clients the coverage they need fast. ProWriters offers a straightforward board approval process with no need for multi-layer approvals and is capable of performing due diligence to document and close extremely quickly as an MGA (meaning in as little as 90 days).
The process of buying and comparing professional liability insurance has been completely reimagined. Brokers no longer need to waste time entering a risk five, six, or seven times. ProWriters offers choices and gives complex exposures and insurance policies a clear, uncomplicated process. This provides more options in a simplified way so you can find your clients the right insurance coverage to fit their specific needs.
While quality products, prices, and workflows can all lead to a positive experience with MGAs, nothing affects the cyber insurance broker/MGA relationship more than service. Doing business accurately the first time around saves everyone time and money. ProWriters is invested in evaluating, optimizing, and updating all processes and technology to save as much time as possible and serves all clients with clear communication and experienced underwriters.
Maintaining up-to-date technology is crucial for providing the most efficient and streamlined workflow processes, as well as protecting businesses from rapidly changing cyber attacks. By working with a number of loss prevention experts across multiple industries, ProWriters works to minimize insurance costs and better educate clients by offering a number of resources on risk management.
Marketing materials, educational resources, and risk management information all help brokers market, quote, and bind policies for their clients. A well-educated client is much more likely to understand their exposure and seek coverage. ProWriters offers a number of downloadable resources, including cyber and insurance factsheets, carrier policy forms, and applications.
Trust ProWriters as Your MGA
ProWriters focuses on Cyber Insurance, Directors and Officers Insurance, Financial Institutions Insurance, and Errors and Omissions Insurance policies, for our retailer insurance brokers, which are crucial to the well-being of your client’s organization or business. As a top wholesale insurance broker, ProWriters has a culture that centers around its mission: making cyber simplified.
For more information on how MGAs can help, download our FREE eBook, The Cyber Advantage: Wholesale vs. Retail Brokerages. Get the facts on how to place the best coverage for your clients.
Contact ProWriters today to get started, or call (484) 321-2335 to speak with a ProWriters expert with any questions.