P&C MGAs & Distribution Partnerships: The Agent Perspective

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 last video of this series, Alexis shares how MGAs can meet distribution partner needs from the get-go, strengthen distribution partnerships, and end one if the need so arises. 

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? 

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, how to navigate their partner platform, and of course, their product’s specifics and value adds offered. 

For example, consider a worker’s compensation policy that has built-in risk monitoring technology. Employees might wear sensor-equipped vests that capture real-time safety data, helping employers reduce workplace hazards and make clear the conditions that trigger a claim — thereby reducing the circumstances under which a claim could arise. 

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 as it helps agents and brokers clearly understand your product’s USP in the market, also enabling them to offer clients the most suitable product customization and value. 

Have easy-to-use Agent & Broker platforms: 

Keep the distribution platform and tech easy to use. Complex, highly technical platforms can deter distribution partners from using them consistently —or at all. 

Alexis recalls a case from one of her startups where a staggering 46% of agents and brokers weren’t logging onto the platform simply because it was too complicated to use. 

Insurance is still deeply rooted in a pen-and-paper culture, one that coexists with modern technological advancements. To use Insurtech effectively, it must accommodate insurance’s inherently human-in-the-loop, relationship driven nature, Alexis reminds. 

She also adds that as a best practice, multiple agents at your MGA’s distribution agency should be onboarded or familiarized with your partner platform, rather than relying on a single point of contact. Since agents often have limited time for training and CE, distributing MGA platform knowledge across a team reduces workflow disruptions when one person is unavailable or shifts companies, ensuring that your product continues to move through the pipeline as usual. 

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. 

Building a Strong P&C Distribution Partnership 

A distribution partnership, once established, can be nurtured through the following ways: 

Offering Continuing Education:

Continuing education provides P&C 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 product) 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 clients of their agency — 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, branded merchandise (Which Alexis loves!), additional gifts or gift cards, 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. 

How to End an Unsatisfactory Distribution Partnership

Even after doing all the above, some distribution partnerships may still fail to deliver mutually beneficial outcomes. Knowing when to cut ties, and deciding the “when” proactively instead of reactively is how Alexis advises MGAs to approach this situation. 

While MGAs may not set minimums at the beginning of their distribution partnerships, it is important that they clearly communicate their expectations to their agents and brokers. If no business, or consistently poor-quality business is being written within the first year, their contract may be discontinued. 

This ensures operational resources are used effectively and that distribution partners remain committed to placing business with the MGA over competing alternatives. 

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.