Top 5 Challenges MGAs Face in Managing Multi-Corporate Business Processes and How to Overcome Them

This post is part of a series sponsored by Selectsys.

Managing the processes of many companies presents significant challenges for Managing General Agents (MGAs). With increasing complexity in the insurance environment, MGAs must integrate multiple systems, stay compliant, manage renewals, and maintain accurate documentation. Here are the top 5 challenges MGAs face and practical ways to successfully overcome them.

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1. Managing Multiple Carriers

MGAs often work with multiple carriers, each with unique platforms, policy formats, and communication processes. These differences create difficulties in managing data, ensuring consistency, and maintaining accuracy across different systems.

Solution:
Adopting a standardized process for data integration across carrier platforms can help streamline submissions, approvals, and claims, reduce the need for manual intervention and ensure consistency.

2. Staying in Compliance with Regulations

Insurance laws are constantly changing, and MGAs must ensure compliance across carriers and jurisdictions. Non-compliance can lead to sanctions and reputational damage.

Solution:
Regular audits, ongoing employee training, and the use of compliance monitoring tools can keep operations in line with regulatory standards, reducing the risks associated with non-compliance.

3. Managing Policy Updates

Renewals are important for customer retention and revenue growth, but managing them across multiple carriers can be a challenge. MGAs need to balance customer expectations, carrier guidelines, and regulatory requirements.

Solution:
Using an effective renewal management system can help track expiration dates, automate reminders, and prepare renewal quotes quickly, ensuring a smooth renewal process.

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4. Maintaining Documentation Accuracy

With so many company administrations and policies, maintaining document accuracy can be a daunting task. Errors in policy documents, claims, or endorsements can lead to disputes and financial losses.

Solution:
Using advanced data validation tools and automated checks can significantly reduce errors in documentation and ensure compliance with carrier standards.

5. Coordination Across Multiple Groups and Stakeholders

MGAs must interact with various internal teams, external carriers, and customers, which can be time-consuming and prone to communication gaps.

Solution:
Dedicated account managers or centralized social media can streamline interactions and improve response times, resulting in greater efficiency.

Use the status summary:

A large MGA facing the challenges of managing carrier systems and maintaining compliance partnered with an experienced BPO provider. By streamlining processes, using compliance monitoring tools, and automating renewal work, they reduced documentation errors by 35% and improved policy renewal rates by 20% within six months.

The conclusion

Overcoming these challenges requires a combination of expertise, technology, and effective management. Using specialized support and advanced tools can help MGAs achieve efficiency in managing multiple company processes.

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