4 Ways Federato Works with MGA Aggregators

1. It lowers system costs, with more flexibility

One of the biggest headaches for an MGA aggregator is dealing with disparate systems and data across all their member MGAs. Ideally, all members would be standardized on a single system for ease of management and reporting, but that’s often not the case, especially for aggregators that acquire other MGAs. 

While aggregators can try to mandate that their members implement new systems, this approach is often very expensive in system and management costs, and sometimes also may create tensions with member MGAs. Even in ideal circumstances, traditional insurtech systems often require long, complex deployments, further driving up costs. 

With Federato, MGA aggregators get a solution that meets their members where they’re at. Program members might choose to use Federato for as much as their entire underwriting workflow, or as little as simply ingesting bordereau data - but no matter the depth of individual program usage, the MGA aggregator gets the reporting information they need for performance monitoring across their portfolio.

For MGA aggregators that do want to standardize their MGA partners on a single system, Federato offers a faster, more cost-efficient alternative to traditional insurance IT providers. A typical Federato deployment is measured in weeks, not years, and does not require costly service hours from system integrators. For MGA aggregators, this timeline can scale down even further with subsequent deployments to additional members, which build on the work of prior deployments to roll out even faster.

2. Increased member access to reinsurance through real-time performance data

A common challenge for MGA aggregators is audit capability: with performance data limited to bordereau and often delivered 4-6 weeks after the fact, it’s hard to stay current on the state of their members’ business. This in turn makes it hard to get ahead of potential issues, or provide capacity partners with data-backed proof that members are delivering on their promises. 

Federato provides MGA aggregators with real-time data on the performance of their MGA partners’ programs, without weekslong delays or manual work by the MGA. This dramatically increases aggregators’ audit capabilities, so they can get up-to-date insight on the status of their members’ business.

With this increased access to performance data, aggregators and their members can negotiate with reinsurers from a stronger position. Aggregators can share quantifiable proof that their members are executing their strategies and delivering results, demonstrating that they can be trusted with both additional risk capital and additional authority.

3. Easier collaboration with members

For most MGA aggregators, the performance data they receive from their member MGAs is limited to bound business only. While this is obviously valuable information, it’s only part of the picture. The aggregator generally doesn’t have insight into what kind of submissions the MGA received, or what underwriting decisions were made, or how many quotes went out for business that ultimately wasn’t won. 

This lack of visibility can make it hard for aggregators to know the best ways to support their MGA partners, and can create extra reporting burden for MGAs trying to share the right data.

Federato makes it easy for MGA aggregators to build collaborative relationships with their members, by providing access to both pre- and post-bind data. With greater shared visibility into the underwriting process, MGA aggregators and their members can work together to put their strategies into action. Meanwhile members can operate more independently, with less pressure to produce reporting data - because the aggregator already has all the information they need.

4. More profitable growth across MGA members’ programs

Federato’s underwriting platform leverages advanced AI to identify which submissions are both highest-appetite and most likely to be won, and then get those submissions in front of underwriters first. Winnability is assessed using both insurance data like account size and risk details, and interaction data that’s unique to each insurer, such as past interactions with individual brokers or agents. 

With significantly better predictive power than traditional winnability tools, Federato’s decision support has helped customers achieve considerable results - including up to 3.7x more high-appetite bound accounts.

For MGA aggregators, this means their members that use Federato for underwriting get meaningful decision support to help them focus on the right deals, with proven tools for winning more high-appetite business. In an increasingly challenging underwriting environment, aggregators can help their partners avoid adverse selection, and increase their profitable growth. 

MGA aggregators choose Federato for a number of reasons, including lower system costs, increased organizational authority, and the tools to help their members profitably grow. With Federato, MGA aggregators get the up-to-date performance data they need for better audits, and ultimately deepen their collaboration with MGA members across their portfolio.

Want to learn more? Check out Federato’s self-guided platform tour, or connect with us for a live demo today.