Setting up an MGA, something there has been an explosion of recently, doesn't remove or circumvent the onerous regulation and process requirements and the need for systems to manage and monitor them. Brokers have the same obligations ranging from data protection, contract certainty, carrier reporting, delegated authority and accounting requirements.
However in years past many of the processes were paper based and systems only focussed on the accounting and money part. Now there is more data, including specific policy detailed information, being entered into the system of record to support he production of documentation and the linking of any claims to that same record.
As the data quality and granularity has increased, appreciation of the reliance on the system of record, the need for joined up solutions - from Broker Portal and Click and Bind aps through to the back office - needs a focussed and dedicated resource that was disbanded in many companies in the London Market over the last few decades - the IT department- a group of logically minded, database driven, data flow inspired individuals (who sometimes even wear sandals!!) These individuals being sufficiently trained in the application not just in the wires and access permissions to emails!
We see too much assumption by stakeholders that the technicians and producing brokers, and MGA underwriters are able to manage the data that comes with their risks, and understand the end to end data structure requirements, codes driving workflow and document selection influencing claims and reporting. When really they should be out generating business.
It's hard watching highly talented front end professionals getting frustrated with the minutia of the data and process restrictions at the same time a band of highly skilled technicians and IT savvy BA's and support staff are being undervalued or put out to pasture.
Yes, strong policy admin and claims systems are important but in this innovative, fast-moving environment focusing on systems and process at the expense of product and claims innovation could see a number of large players caught out as they ‘fiddle whilst Rome burns’.