The MGA Ambition
Our client, a Managing General Agent (MGA), has always been a well-respected name in the insurance industry. They grew steadily over the years like other MGAs by earning commissions on policies sold. Despite their success, our client harbored bigger dreams: they wanted to evolve from a MGA into a MGU (Managing General Underwriter). They refined their business strategy to align more as an insurance company optimized to identify and underwrite profitable business.
However, there was a significant roadblock. Our client was drowning in data – premium records, policy details, and claims information – they had mountains of information, but it was disorganized and unusable. Without a way to analyze this data, it became increasingly difficult to make informed, strategic and profitable underwriting decisions. Their dream seemed increasingly distant, and the business, though stable on the surface, was stagnating.
The Turning Point – Actuarial Insight
After careful consideration, our client decided to partner with Dion Strategic, a firm renowned for its actuarial expertise and profound forward-thinking strategic mindset.
The team at Dion Strategic wasted no time diving into the client’s data. Our first recommendation was to implement a robust data management process. We began by cleaning up the premium data, allowing our client to isolate specific portfolio segments and understand risk profiles and client purchasing behaviours. Simultaneously, Dion Strategic cleaned up the claims data and ensured no loss runs were missing, helping the client identify which policies were generating claims and insurer profitability.
This newfound clarity was eye-opening. For the first time, our client could see patterns and trends in their business. They could track premiums and losses by product, industry, and demographic segments.
With the data organized and accessible, our insurance experts at Dion Strategic moved to the next phase: analysis and strategy. By carefully isolating and matching premiums to losses, we helped our client evaluate the profitability of their insurance coverages. The insights were profound. They discovered which products were underperforming, which were profitable, and which needed rating action.
Armed with this information, our client could make strategic business decisions. They adjusted their focus, writing more policies in profitable segments and raising rates where necessary. They also started using actuarial, strategic, and prospective data modelling and analysis provided by Dion Strategic to refine their renewal strategy with insurer partners, ensuring long-term sustainability and growth.
New Era of Growth
Rather than increasing their internal capacity, our client leveraged Dion Strategics’ expertise. This approach proved to be cost-effective and provided continuous access to top-tier actuarial and a team of industry leading consulting resources.
The results were nothing short of transformative. Over the next five years, our client’s business quadrupled. They went from struggling with disorganized data to having a clear understanding of their operations and increasing their underwriting profitability allowing them to secure more capacity and insurance contracts. They are now making data-driven decisions that propelled their business forward. They have organized, clear, and Actuarial reviewed data to present to shareholders. As of 2024, our client has become one of the largest MGAs in Canada.
With the help of Dion Strategics’ actuaries and experts, our client has turned data into their most valuable asset. No longer just a standard performing MGA, our client is now a sophisticated MGU; an “insurance” company with more control and keen eye on long term profitability and growth.
“This case study demonstrates the power of actuarial reviewed data and the value of partnering with insurance experts to drive business transformation and success for MGAs.”
