A great address by David Howden, Hyperion CEO on the future of Insurance - and not just for MGAs
1. You have to secure your distribution
2. You have to have efficient underwriting
3. You have to invest in data, particularly claims
4. 60% of your staff will retire within 6 years - you need succession planning
Sounds like an excellent Target Operating Model for any insurer to use to secure their own future
“Brokers want efficiency. The challenge for MGAs is to think about the underwriting as well as being efficient distributors,” Howden told the audience. “MGAs need to consider their products, their distribution and their underwriting at the same time. Anyone who can think about all of those things at once and get them right, will survive in the market.” Howden’s main point was that MGAs can survive in an evolving market if they embrace change and improve the efficiency of their product distribution. He also stressed a new demand for MGAs to invest in data – in particular, claims data. Another determining factor is the new generation entering the market. “We are a massively ageing market. Within six years, 60% of people in the insurance industry are due to retire. That’s an enormous figure,” commented Howden.