CHANGE for the better

Implications: MGA's can seek out better lines and Company deals. MGA's can seek out training to meet the changing demands. One very specific area an MGA can capitalize on is TECHNOLOGY.

Analysis:

We must assume that most MGA's do not have the 'big buck' budgets to run a full scale technology department, however, this issue MUST NOT scare the firm away for embracing technology.

As far back as twenty-years ago, our MGA operation (using then state-of-the art Data General Mini Computers) completely automated the front-end quoting process. Today that quoting system using some sort of citrix plug-ins would accommodated online internet quoting.

The automatization reduced errors and workforce.

We also created online underwriting processes. NOT perfect, and NOT complete - however this kind of system can rate/underwrite standard variable risks.

Claims processing also enjoyed the fruits of technology.

In summary... I believe the cost of technology has decreased over the last few decades, and an MGA utilizing technology, with the assistance of an consulting firm will yield bottom line profits in a short period of time.


FULL DISCLOSURE: During the 1980's Mr. Mariotti operated a California MGA, with average loss ratios of 65% or less.