Build an Effective P&C Distribution Strategy for Your MGA (Part 2)

MGA101: How to Build a P&C Insurance Distribution Strategy is a discussion series hosted by Chris Lowell, Managing Director at InnSure, featuring Alexis Vaughn, insurance distribution expert and CEO of Off Course Consulting. In the second video, they break down distribution partner expectations and explore how MGAs can bridge the gap and meet their needs from the get-go. 

What Distribution Partners Expect of MGAs

Chris and Alexis have already discussed where and how MGAs should approach distribution partners—but what else can they prepare to turn these conversations into successful partnerships? 

1. Remember: A Demo ≠ Onboarding for Agents and Brokers!

   Many MGAs assume that pitching or explaining their product is enough to get agents and brokers on board. In reality, they’d need a lot more information— distribution partners would like to understand the MGA’s systems, their product’s ins and outs and value adds, and how to navigate their partner platform. While an agent might be an expert in general liability, it doesn’t necessarily make them an expert at your MGA’s specific general liability product. This makes training essential—it helps agents and brokers clearly understand what sets your product apart from others in the market. 

2. Have easy-to-use Agent & Broker platforms:

   Keep the platform and tech easy to use. Complex, technically advanced platforms can deter distribution partners from using them regularly and effectively. 

3. Ensure that the distribution partners have access to underwriters:

   Distribution partners need to be able to quickly communicate as and when required with the MGA’s underwriter and claims leader to discuss personalization of quotes, additional benefits, etc. Agents and brokers’ operational efficiency as part of a distribution network is completely reliant on the MGA’s and carrier’s systems and the ease of access they provide distribution partners with. Therefore, instead of only providing them with access to the salesperson or relationship manager, Alexis advises providing distribution partners with direct access to the underwriter involved. 

How to Build a Strong Distribution Partnership

Get potential distribution partners close and comfortable with your product, Continuing education provides distribution partners not just with a deeper understanding of the product, but also creates repeated touchpoints with the MGA, fostering engagement and a sense of involvement in their product journey. This connection offers them reasons to choose the MGA’s product alongside, or even over other well-established alternatives with attractive benefits. 

Brokers, especially, are always going to have higher commission points depending on the solution because they work on behalf of the insured, not any carrier. As their job is not to sell insurance, but to consult clients on the best insurance products to purchase, MGAs need to put in the effort to cultivate a relationship with them. 

Independent agents, on the other hand, are focused on selling insurance products to their agency clients — MGAs should ensure that they receive great commission points and easy access to training. They can also provide distribution partners with different motivations like incentive contests, additional gifts or gift cards, branded merchandise, etc. 

Curating Appreciation and Introductory events —These can be dinners or happy hours where the focus of the event is free continuing education and customer feedback, not product sales. These events can create a space for distribution partners to familiarize themselves with the MGA’s product and get involved with the product journey, all without it being in the form of an unengaging class they need to take. 

Conclusion 

Finally, Alexis emphasizes that while the above strategies may appear simple, effectively executing them requires deeper insight and industry experience. A skilled team with distribution expertise will allow MGAs to navigate the nuances that arise and turn planned outreach into meaningful long-term relationships. 

While the above video explores how MGAs can approach and establish distribution partnerships, the next video in the series unpacks how to maintain these relationships and addresses common challenges that may arise along the way.