What InsurTech MGAs are and why they are thriving  

First and foremost, what exactly is an InsurTech MGA? It’s a company that combines the traditional role of an MGA with the flexibility and custom solutions of insurance technology, which allows them to better serve the niche markets in which they operate.  InsurTech MGAs are driven by modern core systems and technology to tap into new markets, create innovative products, develop new distribution strategies, and provide superior customer experience. 

In our recent webinar, Rising tide: Why InsurTech MGAs are making waves, we took a deep dive into InsurTech MGAs, exploring how market dynamics are fostering new potential, how their trailblazing effect is influencing the industry, and where they are focusing investments to drive digital transformations. 

We covered a lot of interesting insights in the webinar but here, we’re narrowing the scope to look at: 

• Which types of new insurance products are being prioritized and why. 
• The degree of automation and impact of AI on internal processes.  
• Focal points for upgrading systems and solutions.

What types of new insurance products are InsurTech MGAs prioritizing? 

Let’s look at four specific insurance products that InsurTech MGAs are focusing on, and how much of an impact they might have on revenue:

• Parametric insurance – Coverage provided in a predetermined amount based on when an event occurs, rather than the damages that result from the event itself. A common example is with extreme weather or geological events, such as a hurricane measuring a Category 4 or an earthquake registering a 7.0 magnitude.
• Embedded insurance – Coverage provided in conjunction with another product or service being sold from a separate party, such as insurance on airline tickets.
• On-demand insurance – Policies that can be turned “on” and “off” by the insured party based on their needs, and that are only paid for when active. For example, professional photographers can turn on coverage for their equipment when traveling for work.
• Usage-based insurance – Also known as telematics, this coverage is based on specific policyholder behavior, rather than traditional factors, and while popular with auto insurance, can be utilized for other lines.

While products for some types of insurance are not expected to have a significant impact, there’s no question that certain areas are growing and offer promising opportunities for expanding business. A key step in ensuring these product opportunities are at their best is pairing them with a strong go-to-market plan, specific both to the target customer and the larger MGA business model. With continued growth expected, InsurTech MGAs are positioning their internal processes in ways that push efficiency and accuracy, without completely removing the human element from their work. But how?

How are InsurTech MGAs utilizing AI and automation?

With new market opportunities emerging, insurance lines diversifying, and agent collaboration more important than ever, MGAs need top-of-the-line solutions and advanced core systems to ensure fast, reliable underwriting processes for their teams, partners, and clients.

InsurTech MGAs are utilizing AI and automation to help speed up these processes and expand operation potential. A recent joint report from ReSource Pro and InsurTech NY found that 63% of InsurTech MGAs have one of three degrees of underwriting software configuration:

• Advanced (18%) – Digital forms and automated workflow software
• Augmented decisions (14%) – Automated workflows and recommendations with a final underwriter review
• Algorithmic (31%) – Automated workflows and algorithmic decision-making with no manual review

This majority is only expected to rise as AI tools become more prevalent, and automation is fine-tuned to need less human oversight. That being said, the need for nuanced and contextual judgement is likely to keep underwriter review a necessary step at certain junctions. In addition to automating underwriting processes, it’s clear that InsurTech MGAs are prioritizing other areas for digital transformation—let’s look at a few of them.

What areas are InsurTech MGAs focusing on for digital transformation?

ReSource Pro’s 2025 P&C Strategic Initiatives Survey covered areas of focus for InsurTech MGAs improving their business processes across the board. The top three areas include:

• Data extraction and analysis
• Agent and broker self-service potential
• Enterprise workflows and collaboration

Essentially, InsurTech MGAs want to process and utilize data more efficiently to better assess risk, help their agency partners enjoy smoother processes and serve clients more effectively, and automate tedious tasks to free up employees’ time for higher-value work. While individually these updates are streamlining operations, it is together that they result in a comprehensive digital transformation. The InsurTech MGAs that are leading the charge on these changes will position themselves as ideal partners, yielding new business opportunities and expanding market potential.