Sequel address knowledge gap in the market…expertise, market knowledge and marketing are major MGA success factors with technology playing a key supporting role
Until now, entrepreneurs looking to launch MGAs on to the Lloyd’s and London Market have had few pointers for success all in one place, claims Michael Graham, Sales and Marketing Director of Sequel.
“It’s only when you look around that you realise how little publicly available all-round advice there is for this part of the market,” Graham says. “It is now time to close that knowledge gap. We have put together five key points to make the MGA launch route easier for entrepreneurs in the future. This advice - which is all about focus - has been distilled from our experience of helping six MGAs launch successfully over the last eighteen months or so.”
His top tips for the perfect MGA launch are:
1. Talk to other MGA start ups who have launched successfully. That’s the best way to avoid potential pitfalls.
2. Start researching and marketing early on to recruit the key carriers and clients you want to work with and for. You’ll need to move fast – the market doesn’t stand still.
3. Highlight your expertise and market knowledge. These are the major points you have to sell on. Prepare to demonstrate these backed up by evidence.
4. Position yourselves as a low-risk option to stakeholders. Be able to demonstrate, with proof, why you are compliant.
5. Focus on what you’re great at - don’t allow yourselves to be distracted from your core business. Choose a system that will work seamlessly, end to end, that’s going to be up and running in a few weeks. After all, you’re an insurance, not an IT company.
“It’s the combination of expertise, knowledge and the right kind of research and marketing that are the major success factors for MGAs – but business technology has a key role to play in their launch and continuing optimum business performance,” Graham adds.
“Having the right kind of specialist system in place keeps the regulator happy and is a key differentiator for the carrier or carriers backing the MGA,” he continues. “It demonstrates that the new launch is not going to crash and burn. That same system brings further benefits by handling the MGA’s business seamlessly from front to back – this frees up the management team so they can concentrate on their core business without having to worry about what’s happening under the bonnet. It also gives them easy access to the quality data they need, whenever they want it, in real time.
“We’re seeing a trend where MGAs are launching with very tight turn around times - from conception to hitting the market - then continuing to operate with great success. A significant part of that success is made possible by the specialist modern and powerful systems they’ve chosen to run on. The new MGAs are invigorating the market place. They’re carving out opportunities for themselves and building business for their carriers in new market places,” Graham concludes.