In the world of commercial insurance, many processes still rely on outdated methods like faxes and PDFs. Graham Topol, co-CEO of MGT Insurance, believes this situation reflects not just a technological lag, but also a deeper issue of priorities within the industry.
Despite 94% of insurance companies claiming to work on improving efficiency, more than half admit they are not making significant progress. This disconnect highlights challenges such as old systems, a culture that avoids risks, and a gap between those creating technology and those who use it. For brokers, these issues lead to delays, confusion, and lost opportunities.
MGT Insurance is taking a different route. Instead of pushing brokers aside, they focus on building a full-service insurance carrier that caters to brokers’ needs. Topol emphasizes that their approach is about enhancing the broker’s role, not replacing it. "AI automates the boring stuff so brokers can focus on what they do best," he said.
Topol’s motivation stems from his own experience while trying to purchase a commercial policy for MGT. He spent hours filling out forms and waiting for a quote, which took a week to arrive. This frustration opened his eyes to the broader inefficiencies in the commercial property and casualty insurance space, where many brokers face slow underwriting and rigid systems.
MGT aims to streamline the broker’s workflow, allowing them to quote and bind policies in under two minutes, a significant improvement over Topol’s previous experience. He notes that speed is important, but it’s not the only factor. As a fully autonomous insurance carrier, MGT manages everything from underwriting to claims, which helps improve data quality and pricing accuracy over time.
The decision to become a full carrier rather than just a tech-enabled broker came after a conversation with a technology officer from a broker who revealed that some insurance partners still required documents to be faxed or mailed. This realization inspired Topol to create a carrier specifically designed for brokers.
While some brokers fear that automation might threaten their jobs, Topol sees it as a tool to empower them. For instance, MGT’s appetite checker uses natural language processing to quickly assess whether a risk fits their guidelines, saving brokers time and allowing them to act faster.
Topol stresses that efficiency is not the only goal; maintaining high underwriting standards is crucial. He believes that improving the broker’s work environment ultimately benefits customers as well.
The challenges faced by traditional insurers are often tied to outdated technology and a culture resistant to change. Topol mentions that many of their hires come from larger carriers and express surprise at the freedom to experiment at MGT.
By fostering a collaborative environment where engineers and insurance professionals work together, MGT aims to break down the silos that can stifle innovation. Topol emphasizes the importance of using technology pragmatically to drive positive outcomes, focusing on enhancing the tools brokers use daily.
In summary, MGT Insurance is reshaping the commercial insurance landscape by centering brokers in their operations and using technology to streamline processes. Their approach aims to reduce friction for both brokers and customers, ultimately making the insurance experience more efficient and user-friendly.