Finding the Best Insurance Compliance Software for MGAs: 2024 Insights

A few years ago, the insurance industry buzzword was “volatility.” In 2024, the word is “compliance” and MGAs are looking for the best insurance compliance software.

Undoubtedly, the market has changed vastly within the last few years. The sector has undergone widespread and significant tightening in the reinsurance markets. As a result, reinsurance players have hiked prices, implemented stricter terms, and set higher attachment points, all directly affecting the primary insurance markets.

Fast-forward to the present where the MGA market is finding stability. Now, the main objective of MGAs is to look to the future and expand their operations to adapt to evolving trends. Essentially, they need the best insurance compliance and licensing software.

But how can you make your mark in the industry? We explain in this article!

First, an Overview of the 2024 MGA Market

Despite a decrease in economic inflation and promising forecasts for 2024 compared to 2023, difficulties in the insurance market still persist. You need to prioritize enhancing operational efficiency while refining your operational strategies further.

In 2024, MGAs will concentrate on boosting profitability by harnessing modern technology to automate workflows, especially those focused on compliance. Their goal will be to streamline processes and transition from traditional paper-based methods to cloud-based systems.

Moreover, MGA leaders may consider collaborating with non-competing MGAs and InsurTech companies to foster innovation, share expertise, and pool resources.

There’s a lot to talk about concerning 2024’s insights for MGAs. Here’s a list of the most relevant ones you need to keep in mind:

• Customer-centric. The insurance world now focuses on customer experience expectations to attract and retain customers, build trust and confidence, and maintain a positive reputation.
• Transform digitally. This allows you to remain competitive, adapt to changing customer expectations, and capitalize on emerging opportunities in an increasingly digital world.
• Reduce costs. Not only you, but clients are also cutting their costs. That means you need to minimize your overall costs to also offer a lower price to your customers.
• Stabilization. The reinsurance market is currently stabilizing; now is the time to make investments aimed at the future. This puts you in a great position to be ahead of your competitors when the market returns to its full capacity.
• Focus on renewals. As 2024 progresses, the tenor has changed around reinsurance renewals because, let’s face it, reality has changed. We therefore expect more certainty around rates and capacity.
• Selectivity. Carriers have been reeling from the reinsurance turbulence of 2022 and 2023. As a result, they will become even more selective about how they deploy capital and resources. Focus on showing yourself as a technological professional with the necessary tools to minimize risks and costs.

How Can an MGA Find the Best Insurance Compliance Software in 2024?

In light of the 2024 conditions of the MGA market, there are some key features you should look for. Not all solutions will meet your expectations or be capable of making you stand out in this challenging market, thus making your choice tremendously important.

Read on to check if your solution provides these benefits.

Cut Your Costs

Do you see yourself spending more time and resources on administrative processes? For example, you might constantly need to check the NIPR website for licenses and appointment statuses or deadlines.

The first and utmost feature is the automation of these lookups. You can’t afford to lose time or waste resources on hiring someone to check the NIPR and update spreadsheets. This is manual work that consumes too much time and increases your costs and risks—as manual inputs lead to a higher probability of mistakes.

 

Help You Expand Your Operations

Your partners will also prefer the ones that can be sold in many different states. To help you manage your producers’ and your own activities, the software solution must provide a dashboard that allows quick filtering of information.

For example, you should be able to immediately find license and appointment deadlines, renewal dates, and statuses by state, region, and more.

Become Scalable

Usually, there are a lot of costs involved in acquiring new partners or producers, reaching a new market (both niche and state), and more. Since this results in an increase in your costs, you might end up taking loans or spending more in the long term.

In 2024, scalability is not a requirement to thrive in the market, but to survive. You can’t rely on slow and costly processes anymore. The goal should be to find a way to acquire more producers and sell more insurance, without increasing your costs.

This is completely possible with insurance compliance licensing software. In practice, the solution should bring the following features to the table:

• Quick bulk onboarding of producers, allowing your producers to start selling immediately.
• A cloud-based solution, eliminating the need to upgrade or acquire new hardware.
• Minimize the need for additional training—or completely eliminate it.
• A mobile app to bring more versatility to your team.
• An API to integrate with any other system you or your partner might use.
• Automatically get info about licenses and appointments of your team, without having to hire someone to get this information.

Always Ahead of the Market

The insurance market is always changing, and in the following years, we are going to see even bigger changes. No matter how good a compliance solution is right now, it won’t be enough to keep you consistently relevant in this ever-changing industry.

In this case, one of our biggest recommendations is to make sure your insurance compliance licensing software is always changing as well. While evaluating your software provider, ask them what the planned updates are and what’s the update history.

With this, you know that the solution is always evolving to keep up with the market. By partnering with them, you are always utilizing the latest technology available.

Another relevant detail to know is how they choose to update. Your ideal partner should listen to their clients’ feedback and implement new functionalities according to those needs. If possible, talk to them to find out if future updates are based on client feedback or are going to be useful for you.

Security Software

MGAs, along with their partners, should adopt a “security-forward” approach, continually focusing on preventing unauthorized access to their systems and data.

In 2024, players are likely to inquire more about additional cybersecurity measures. MGAs should be prepared with potential responses to address concerns and demonstrate their commitment to maintaining the highest levels of security.

However, it’s not enough to create strong passwords and protect them; it is also crucial to use anti-virus software, and firewalls, and avoid clicking on suspicious links or files. Your insurance compliance and licensing software should also be otherwise secured.

Ask them if they follow up-to-date best practices for data protection, as well as in compliance with all laws related to this topic. Agenzee is cloud-based and does not store any information.

What this solution does is immediately extract information from the NIPR database in real-time and presents it to you. That means that no sensitive data is stored on your computer or mobile device, alleviating you from the fear of getting hacked and your data stolen.

Leverage Agenzee—The Best Insurance Compliance Software You Will Find

To navigate the 2024 insurance scenario—and the new few scenarios—you need a partner that understands your needs and how to solve them. Agenzee’s standout solution offers a comprehensive suite of functionalities for a more intuitive, efficient, and compliance-driven experience.

We help you overcome your challenges and complexities by streamlining your compliance processes. We know you understand the value of a tailored system designed specifically for MGAs. Expect nothing less than the following key features from us:

• License and appointment tracking
• Continuing Education (CE) hours tracking
• Easy license renewal
• Regulatory alerts
• Customizable dashboard widgets
• Real-time updates from the NIPR database
• Mobile app accessibility
• …and much more!

If the thought of adopting a new system seems daunting, rest assured. With Agenzee, our unwavering support ensures that you receive the guidance and assistance needed to navigate our platform confidently and maximize its benefits.

By embracing the best  insurance compliance software, you can seize new opportunities within the insurance sector, distinguish yourself from competitors, and drive growth. Our features are tailored to propel your success by offering advanced and innovative tools to help you achieve your business objectives and overcome challenges.

Don’t fall behind in 2024. Request your free personalized demo today and discover how Agenzee’s insurance management solution can revolutionize your operations!