Managing General Agents (MGAs) have a unique position in the insurance market, acting as specialized intermediaries for insurance companies. While they don't have the scale or brand recognition in a niche or local community as a major insurer, MGAs can compete effectively by leveraging their agility and expertise to grow their insurance business.
Technology is the MGA's most powerful tool for competing. Unburdening themselves of legacy systems that slow down large insurers, MGAs are adopting cutting-edge technology at a fraction of what enterprise insurers pay for a policy administration system (PAS).
For a Managing General Agent (MGA), selecting the right insurance management software is not a matter of convenience—it's a critical business decision. The right platform enables MGAs to compete with large carriers, attract and retain top talent and deliver a seamless experience to their distribution partners.
While retail agencies can use a standard Agency Management System (AMS) or Customer Relationship Management (CRM), the MGA's unique role as a delegated underwriter requires a more robust and specialized technology stack. Internet Solutions for Insurance (ISi) is a modern, modular and table-driven software that allows seamless integration with carriers and agents, streamlining the entire policy lifecycle processes.
Here's a breakdown of the critical software an MGA needs, focusing on what to look for and the key players in the space.
The Most Critical Software for MGAs: A Policy Administration System (PAS)
A PAS is the single most important piece of software for an MGA. Unlike an AMS, which is built for agency operations, an MGA's PAS must be able to perform the core functions of a carrier. It serves as the operational backbone for the entire policy lifecycle.
What an MGA’s PAS Must Do:
Underwriting and Rating: The system must have a flexible, low-code/no-code rules engine that allows underwriters to configure products, update rating logic, and launch new products in weeks, not months. ISi has table-driven functionality for easy customization.
Policy Issuance and Administration: It should automate the generation of policy documents, manage endorsements, and ensure regulatory compliance. ISi integrates with third-parties to complete these processes without hiccups. ISi even delivers real-time quotes and stores them in the system.
Billing and Reconciliation: A good PAS can handle the complexities of MGA billing, including direct bill and account current reconciliation. ISi automates billing through maintenance jobs that generate invoices, apply payments, calculate commissions, and issue notices for late or canceled accounts. Reconciliation is supported by detailed transaction records and account current processing, ensuring premiums, commissions, and remittances balance accurately for carriers and agents.
Table-driven Architecture: The system should have a table-driven architecture to seamlessly integrate with carriers, third-party data providers and front-end portals.
Reporting and Compliance: It must be able to generate bordereaux reports and provide auditable records that satisfy the strict requirements of carrier partners and regulators.
A PAS like ISi serves as the operational backbone for the entire policy lifecycle.
PAS for MGAs: ISi | MGA Insurance Software
By combining deep expertise with a modern, tech-forward platform, MGAs prove their value to carriers by delivering a profitable book of business. ISi is the best option as a PAS, the core operational system for an MGA that underwrites, rates, and issues policies on behalf of its carrier partners. It is necessary for MGAs that handle product innovation and the full policy lifecycle with the following features:
Policy Ownership
Policies that an MGA binds are owned and housed in the carrier’s PAS (ISi). ISi also supports portal access with secure AuthTokens, so MGAs (and their appointed agents) can log in to submit new business or view their book of policies without exposing unrelated carrier data.
Channel Management
ISi tracks policies by agent/broker/MGA codes, so production, loss ratios, and commissions can be measured by channel.
Different commission rules or billing methods (direct bill vs. account current) can be applied to MGA business.
Automation & Compliance
Renewal, cancellation, and billing jobs run through ISi, ensuring regulatory compliance on notices and timing. When MGAs bind risk, ISi applies the carrier’s configured underwriting and policy rules to maintain consistency, accuracy and compliance.
Speed to Market
The technological agility of ISi enables MGAs to achieve remarkable speed-to-market. They can launch new products in weeks or months, a feat that can take a large insurer a year or more. This responsiveness allows MGAs to capitalize on emerging market opportunities quicker than competitors.
Integration
While a PAS is the core, a modern MGA needs to integrate other systems to build a complete technology stack. ISi integrates with:
Third-Party Data & Services
ISO (Insurance Services Office) – for rating content, loss costs, and statistical reporting.
DMV / MVR providers – motor vehicle records for underwriting and rating.
Credit bureaus – credit scoring and eligibility checks.
Replacement cost estimators – property valuation tools (e.g., E2Value).
Payment processors – electronic payments, credit card, ACH gateways.
Agency Management System (AMS) for MGAs
MGAs may need a combination of a PAS, AMS or CMS, with integrations between them, depending on a few factors. Most MGAs only need a PAS and an CMS.
An MGA's relationship with retail agents is crucial and an AMS helps manage helps if they have a separate retail agency business.
Customer Relationship Management (CRM)
A CRM is vital for an MGA's business development. While MGAs’ PAS may have some CRM-like features, a dedicated CRM helps with:
Lead Tracking: Tracking and managing leads for new retail agents.
Marketing Automation: Automating follow-up emails and marketing campaigns to build relationships with distribution partners.
Pipeline Visibility: Gaining a clear view of the sales pipeline, from initial contact to binding a new program.
In essence, an MGA's ability to thrive and compete with larger insurance companies lies in its strategic adoption of the right technology. With a robust PAS at its core, an MGA can enhance its underwriting discipline, accelerate product delivery, and position itself as a key strategic partner for insurance carriers. From there, they can integrate CRM and AMS as needed to track leads prior to quoting, market new products and track agents more closely.
Book a demo to see how ISi can help your insurance business.