GreenKite’s top takeaways from the ILC’s MGA Claims Conference 2023

Claims and underwriting considerations

The conference delved into pressing topics such as Consumer Duty, which introduces increased regulatory oversight, leading to a higher compliance and reporting burden. While this may challenge insurers and MGAs, the ultimate aim is to enhance policyholder experiences. Transparency, including data sharing, reporting, and audit, was emphasised as pivotal in achieving these goals. Additionally, discussions touched upon the impact of the economic environment, noting a surge in fraud cases. An ABI survey revealed that fraud affects up to 30% of certain lines of business, influencing risk selection, underwriting, and claims handling. Therefore, the need for vigilance and proper risk management strategies was underscored.

Data challenges and digital transformation

A significant challenge in digital transformation is the handling of data. Attendees explored the role of data in the insurance landscape and its implications for MGAs. Questions were raised about best utilising the data collected and whether current management information (MI) allows for effective risk management. The need for insurers to streamline data processes for MGAs and data’s relevance in decision-making were central themes. Striking the right balance between collecting valuable data and overwhelming processes was also discussed.

Drivers for adoption of digital solutions and overcoming barriers

Rising customer expectations, competitive pressures from new market entrants, and the global talent shortage emerged as the primary drivers for adopting digital solutions. These drivers compel the industry to enhance processes and customer experiences. However, the path to digital transformation is not without hurdles. Barriers include budget constraints, limited technical resources, and rapid technological advancements. Additionally, the challenge of identifying and solving customer-centric problems remained a key focus, as success in the digital age hinges on tackling these barriers head-on.

Key takeaways

• Establish a clear claims strategy and prioritise effective claims management
• Foster strong relationships between pricing, underwriting, and claims teams
• Implement robust portfolio management practices, including predictive analytics
• Maximise the value of claims data and analytics to enhance decision-making
• Promote closer collaboration between underwriters and claims handlers for improved outcomes

The MGA Claims Conference 2023 provided a valuable platform for industry professionals to exchange ideas, address challenges, and chart a course toward a future where claims handling in the MGA market is efficient, customer-centric, and technologically advanced. It emphasised the importance of collaboration, transparency, and data utilisation as vital elements in this transformative journey.

GreenKite supports several firms looking to improve their customer service, and revitalise their claims process, claims operations and claims data and analytics functions. This work primarily supports market modernisation activities and regulatory change and drives more informed decision-making by senior stakeholders. If you feel you could benefit from greater insight and would like further information, please contact Nadia at [email protected].