Home | News | Blogs | An MGA Case: How to Combat Data Silos and Strive for Team Cohesion

Blogs

An MGA Case: How to Combat Data Silos and Strive for Team Cohesion

10th June 2024

An MGA Case: How to Combat Data Siloes and Strive for Team Cohesion

Today, the insurance industry faces a myriad of challenges that are constantly developing, ranging from economic and geopolitical factors to internal discrepancies like data silos and team fragmentation – and MGAs are not exempt. Traditionally, MGAs would rely on archaic processes to conduct their due diligence and regulatory processes, collect data and collaborate with their team. Now, this is no longer sustainable, and MGAs must embrace digital transformation if they want to stay ahead of the curve. In fact, a recent McKinsey study found that 25% of the insurance sector will be automated in 2025 thanks to machine learning and AI.

Moreover, the value and the volume of data is bigger than ever, and not embracing sophisticated ways of managing it can lead to data decay. Therefore, MGAs won’t be able to catch up if they rely solely on legacy software that significantly hampers effective long-term performance. 

In this article, we’ll dive deeper into the different data hygiene challenges MGAs are faced with, their impact on team fragmentation, and how technology can help surmount these struggles and achieve team cohesion.

4 Data challenges MGAs struggle with and their impact on team cohesion
The Data Challenges MGAs Struggle With and Their Impact on Team Cohesion
1. The Lack of Centralisation

MGAs are responsible for collecting the correct information on the trading partners they work with to meet the many regulatory and compliance pressures they face. As a regulated business, decentralised data can lead MGAs to make serious mistakes that could compromise both their operations and revenue. Not only that, but decentralised data also creates team silos, where oversight is fragmented. Cohesive teams depend heavily on how quickly and accurately they coordinate their operations, which prevents teams from being divided. Additionally, with more than 45% of insurers and MGAs feeling that  agency application processes could be faster, data centralisation is more important than ever and can only be achieved through adopting the right system. 

2. The Legacy Systems Trap

Many MGAs are still using outdated technology and manual processes to collect and analyse their data thinking that they’re doing the right thing. Unfortunately, these techniques are siloed and are not robust enough to connect systems and collate data from different outlets which slows down decision making significantly. Reg Technologies’ research found that 41% of MGAs still use Excel spreadsheets to manage their relationships which cannot automate either data collection or processes. Moreover, our report found that manual processes and multiple data silos impact 28% of the general insurance industry. This in turn takes a toll on how connected and harmonious teams are.

3. The ‘Data Hygiene’ Conundrum

Data hygiene involves maintaining and ensuring the cleanliness and quality of data in an organisation’s databases. It encompasses processes and strategies to rectify, organise, and remove errors and inconsistencies from the data. According to Forbes, B2B data decay reaches a rate of 70% per year and Gartner found that poor data quality costs firms $13 million. Thus, MGAs that do not use relevant technology fail to access real time data that is of high quality and reliable, which can be generated in minutes instead of weeks. Most importantly, having a clean database can help MGAs accelerate their trade partners’ onboarding, in turn, enhancing relationship building and customer experience. From a team perspective, data hygiene directly impacts how coherent a team is. In that sense, if data is decaying and being lost, the whole team will be impacted and won’t be able to function properly. 

4. Data Integration and Transfer

MGAs have different SaaS systems they use to carry out their underwriting and other processes. However, integrating their workflows can be fragmented, which can affect their customers’ experience. Furthermore, MGAs tend to collect data from various sources such as external databases and internal systems, which could create integration challenges as they’re trying to maintain data quality and consistency. Appropriate software with a built-in API can help MGAs to integrate their data seamlessly without the need to go to different data outlets. 

The Importance of a Collaborative Culture and How it Facilitates Team Cohesion ​
The Importance of a Collaborative Culture and How it Facilitates Team Cohesion

The fundamental changes start within MGAs’ organisational cultures. They need to be willing to adopt technology and foster a collaborative environment to prevent data silos. If teams and decision makers are disjointed, with no training or support in place, MGAs will naturally fail to proactively invest in systems that help support team cohesion. Additionally, by encouraging a culture that promotes collaboration and open communication, these firms will easily be able to break their data silos as every team member, including partners, will be in harmony which will prevent human errors, duplications and other data errors from happening.  

The use of spreadsheets and other manual tools compromises collaboration as well. Spreadsheets can easily be lost or not reach a certain team member, whereas using a sophisticated specialised software, teams have access to the same real-time data, along with staying alert of any potential changes.

How Can RegTech help MGAs Eradicate Data Silos and Create Team Unity? ​
How Can RegTech help MGAs Eradicate Data Silos and Create Team Unity?
1. Streamlined and Centralised Data

RegTech centralises data by offering a comprehensive and intelligent data integration software, consolidating information from various sources into one unified repository. This streamlines data processes, ensuring accuracy and efficiency which in turn facilitates cohesion within teams and kills data silos. Additionally, MGAs can easily collect, collate and control data gathering from their connections in seconds, eliminating second guessing and data fragmentation. By adopting RegTech, MGAs won’t need to use spreadsheets or CRMs anymore for any of their mandatory compliance and regulatory processes, enabling them to accelerate workflows and routes to revenue.  

2. A Collaborative Environment

RegTech software includes collaboration tools specifically designed to foster team cohesion within MGAs, but also play a crucial role in eradicating data silos. In that sense, these automated collaboration features facilitate communication, document exchange and data collection among team members, regardless of where they are. By breaking down communication barriers and promoting knowledge sharing, RegTech helps MGAs become more unified and enhances their productivity and efficiency without missing any important business opportunities.  

1. Removing Data Decays

RegTech significantly reduces MGAs’ risks and help them maximise trade by removing data decays from their CRM data. Indeed, by connecting their CRMs to RegTech software, MGAs can benefit from increased data quality and accuracy as the software does all the work automatically through machine learning capabilities. Moreover, RegTech provides comprehensive insights and analytics, and offers a more sophisticated and error-resistant solution to navigating the intricacies of the regulatory landscape. In fact, our latest 2024 research report shows that 21% of respondents recognise the benefits of using the software already.   

The importance of embracing digital transformation to overcome data siloes and achieve team cohesion
Conclusion

In summary, data silos are a huge hurdle for MGAs and in turn lead to team fragmentation, missed revenue opportunities and even more serious chaos if not addressed in a timely manner. Today, every business, no matter the industry, needs to embrace digital transformation if they want to adapt and survive. And the only way forward is to find the right technology provider that can help centralise information and enable them to easily share their data both across their organisation and their potential trading partners. Importantly, an instilled collaborative culture is necessary to ensure that everyone is on board with combatting data silos and achieving team cohesion. With its intelligent software, RegTech enables MGAs to smoothly integrate their existing systems into one centralised platform that facilitates data collection, analysis, reporting and organisation. Now, with all the tools available at their fingertips, will MGAs take the necessary actions to eradicate silos and achieve good data hygiene? 

Speak to one of our experts to learn how REG Technologies can help you.

This article was published by:

Article author:

Bonnie Donaghue

Bonnie Donaghue is a Customer Success Manager at REG Technologies. She is passionate about building successful relationships with customers to ensure satisfaction and success.

020 3946 2880

info@reg.uk.com

Related Content ...

Enhancing Onboarding Efficiency for MGAs: How RegTech Streamlines Compliance

Enhancing Onboarding Efficiency for MGAs: How RegTech Streamlines Compliance

With constant economic uncertainties and a fluctuating political landscape, MGAs (Managing General Agents) are now faced with bigger regulatory and compliance burdens than ever before. Clyde & Co reports that 50% view the increase in compliance obligations as an obstacle to entering the market. These burdens significantly hinder MGAs' capacity to start new business relationships with potential trading partners, halting growth and slowing innovation. 66% of insurance and financial services firms believe that regulatory and statutory obligations inhibit starting new business relationships, which in turn affects profitability. This is why it is imperative for MGAs to leverage new innovative technology that reduces regulatory challenges and facilitates streamlined onboarding of partners...

Learn more
How Can MGAs Drive Superior Customer Experience and Enhance Retention

How Can MGAs Drive Superior Customer Experience and Enhance Retention

MGAs play an irreplaceable role in the insurance sector, and while it’s crucial for them to be on top of all their regulatory and compliance duties, they also need to ensure seamless customer experience (CX) and retention. At the end of the day, customers should always be at the heart of every business decision because without them, no firm would survive. In addition, MGAs need to ensure they’re always treating their clients fairly. According to Forrester, 41% of customer-obsessed firms achieved at least 10% revenue growth in 2023, compared to only 10% of less mature firms...

Learn more
Data Decay - Can Hygiene Make It Smile Again?

Data Decay – Can Hygiene Make It Smile Again?

When we first started to store digital data we were all very conscious of mechanical data decay caused by a crashed server, corrupted hard disk or even just a transfer from one storage device to another. But as time has passed, regular autosaving, routine backups and cloud hosting have helped us manage mechanical data decay...

Learn more
How Compliance Software Can Alleviate Regulatory Burden

How Compliance Software Can Alleviate Regulatory Burden

In today's rapidly evolving business landscape, regulatory compliance has become a significant challenge for financial institutions and other regulated industries. The ever-changing and complex regulatory requirements place a heavy burden on organisations, leading to increased costs, resource allocation, and operational inefficiencies. However, a silver lining appears through the rise of compliance software, which serves as an innovative solution to manage the abundance of regulatory requirements...

Learn more
Accelerating Trade Partner Onboarding with RegTech

Accelerating Trade Partner Onboarding with RegTech

In an industry where success hinges on strong relationships, insurance and financial services companies must prioritise integrity, trust, and diligence when forging new business relationships. However, navigating the intricacies of regulatory and statutory obligations often creates obstacles for these relationships from the start. The complexities of regulatory adherence have been cited to impede regulated firms’ abilities to effectively initiate new partnerships; hindering growth and stifling innovation. Now, with the growing emergence of RegTech, businesses can streamline compliance processes and accelerate trade partner onboarding, ultimately setting them up for sustained success...

Learn more
MGAA Webinar: How MGAs Can Supercharge The Agency Experience

MGAA Webinar: How MGAs Can Supercharge The Agency Experience

It’s nearly 20 years since statutory regulation of general insurance placed the acronym TOBA into everyday insurance talk. Agency application processes have developed little in that time, with brokers still reporting that their onboarding journeys with suppliers are slow, repetitive and leave business opportunities missed. Many MGAs limit the number of brokers they trade with, simply because of the drama associated with opening an agency! With online bank account opening, mobile onboarding, e-signatures, and pre-filled forms we ask…How can MGAs use tech to rapidly find, engage, sign and trade with new producers in an on demand, global, digital marketplace?

Learn more

See how The REG Network can help you

Talk to one of our experts to start streamlining your processes

Book a demo with us today