Challenge

A rapidly growing collection of MGAs writing commercial lines face gaps in data, incomplete information and conflicting loss ratio views across stakeholders, hindering profit commission negotiations. This was the MGA’s first main engagement with actuaries, and they wanted a partner who could undertake accurate technical work but also contribute positively to commercial discussions.

Approach

Practical and timely advice: We created a roadmap with senior leadership that was aligned to key commercial decision-making points and included planning data cleaning, loss ratio segmentation and pricing adequacy work to align to schedules for meetings with carriers. Our roadmap ensured that the MGA had deep insights and reporting ready well ahead of key discussions.

Quantification of uncertainty: We quantified the range of loss ratio outcomes based on comparable benchmarks as well as scenario analysis, helping to understand the statistical variability.

Operating like an in-house team: We structured our engagement to mirror the dynamics of an in-house actuarial team. Our team members were available to respond rapidly to client needs and build genuine partnerships with the client’s key stakeholders.

Impact

Through our analysis and delivery of detailed reports for this MGA, we created a deeper and more consistent understanding of the portfolio and its performance, from underwriters to senior leadership. Our work helped to draw out and resolve differences of opinion with capacity providers and speed the progress of discussions.