Digital Strategy: A Practical Checklist for MGAs

Karen Stanford, Operations & Transformation Lead, recently designed and led a session for the Managing General Agents Association (MGAA) on how to transform an operational model using Data and Technology. Here we summarise a 12-step approach that all MGAs can follow and refer to.

Karen says: “I’m passionate about language not being used to disempower people from doing what they know needs to be done. The phrase ‘Digital Strategy’ sounds huge! But a good strategy does not necessarily need to be a large strategy. And small changes in what you prioritise can make big changes in your firm and add up to truly transformational. The biggest MGA with big resource and dedicated team-members and the smallest MGA with a limited budget will benefit from checking off the 12 steps below.”

1. There is no one-size fits all ‘strategy’. An MGAs appetite, as well as its types and classes of business will all impact upon what is, the right strategy for them.
2. Adopt a company-wide approach, one that facilitates ‘flexibility’, and ‘agility’ because that drives down costs’.  It is also crucial that businesses involve ‘business’ people in setting the strategy.
3. Think of this as a true partnership and before entering into a long-term contract with any vendor, consider who really understands your business, and can deliver value.
4. Do not be sucked in by fancy technologies and sales pitches. Having a strategy and a clear understanding of it, is much more advantageous, as is knowing what success looks like for your business.
5. Irrespective of whether your business is currently engaged in Lloyd’s or Company Market/Business, make sure you are up-to-speed on the progress Lloyd’s in making in its efforts to reduce the associated costs to do business within the London Market.
6. Allocate suitable resources from within the business to contribute to external committees .i.e. during Lloyd’s consultation periods.  Similarly, proactively share feedback with your business partners namely the software houses and/or your policy admin systems provider.  Industry engagement will give them a louder voice to act in your interests, and that of the policyholder.
7. Whilst delegated authority may not be the priority for Lloyd’s right now, businesses should use this time wisely and establish a clear line of sight as to what preparatory actions are required now to achieve their longer-term desired outcomes.
8. A practical starting point would be to look at how your data capture aligns with Lloyd’s Core Data Record (CDR). The CDR, and this approach to standardisation is critical to all business, it does not matter if it is a Lloyd’s binder or not, it will be critical to analytics across the spectrum of products and understanding your customer base.
9. Take this opportunity to start building your competitive advantage and differentiate your business from peers in the market, it is that important!
10. Data Quality is key. Companies need to be delving into their underlying data, understanding where enhancements are required and making the necessary improvements.  Carriers will be driving improvements through their coverholders, otherwise DDM is not going to accept the data.
11. Businesses need to ask themselves and be clear on the answers to certain questions, such as ‘Do you have data specialists?’, ‘Who will manage it, is it an IT project, a MI project, a Change project?’, ‘How is it being prioritised by other business areas’, ‘Is it a high or medium priority?’, and ‘How will it be resourced moving forward?’.
12. Be patient, it won’t happen overnight, but if you don’t make a focused attempt to move it forward, you will never achieve it!’

To view the Transforming Your Operations Model using Data & Technology webinar produced in association with the MGAA on-demand, see here