Build an Effective P&C Distribution Strategy for Your MGA (Part 1)

Chris Lowell, Managing Director at InnSure and Alexis Vaughn, insurance distribution expert and CEO of Off Course Consulting return with a second video for Insillion’s MGA101 series to unpack the initial steps involved in creating a strategic distribution plan as an emerging MGA.

Why Early Distribution Planning Is Critical for MGAs 

Below is a typical (grossly oversimplified) checklist an aspiring MGA founder might draft when planning to launch their MGA: 

1. Develop Product 
2. Build or Buy Technology 
3. Secure Capacity 
4. Create a Distribution Strategy 

While the items appear to be logically ordered, Alexis advises that distribution planning should be moved higher up the list—even before seeking capacity, in some cases. 

Once capacity is secured, the MGA is expected to get its product to market as soon as possible. Without a well-defined plan in place, many MGAs pause at this stage. 

While most possess the expertise it takes to develop their insurance product or technology, they may lack the understanding needed to build an equally effective distribution strategy. Hiring or partnering with the right team of distribution specialists is imperative to hit key milestones smoothly, and having an 18-month distribution plan from the get-go is Alexis’s recommendation to achieve that. 

Engaging with distribution partners early, getting their inputs during the product development phase and tweaking products as necessary can go a long way—not only does this make the MGA’s product more market ready, it builds trust, increasing the odds of said agents and brokers being early adopters and advocates for the product when it first launches.  

Arranging multiple meetings or demos with distribution partners is not an adequate substitute for the deep networks and connections distribution consultants bring to the table, explains Alexis. Their association with a program lends credibility to the MGA’s business strategy and strengthens market confidence in its products. 

Where and How should MGAs Approach Distribution Partners? 

Instead of trying to secure distribution partnerships by using extensive email campaigns to get products in front of agents and brokers in the hopes that they like them, here are some better, relationship driven methods that Alexis recommends. 

Attending events and conferences and being part of associations where trust has already been built is a great way to make connections—MGAs should join aiming to educate and be meaningfully involved in their committees rather than expect new business immediately. The person on the MGA’s team leading these efforts must fit naturally into the distribution space and should be able to speak the language of the insurance agents and brokers. 

Conclusion 

Simply understand the 9 key insurance distribution channels, distribution partner expectations and more with Alexis’s expert insight and real-world examples. Watch the full video to get started with building solid distribution partnerships today.