Capital providers seeking to align with underwriting agencies are looking at six key areas, an Xceedance-Insurance News webinar has heard. 

Howden Re regional director of underwriting agencies Adam Matteson says the six “pillars” they want agencies to have developed – or be capable of developing – encompass underwriting, distribution, claims, technology, regulatory compliance and capital. 

“At the early stage, we like agencies to have at least two of those pillars and they can build some of the others up over time but, realistically, there needs to be a clear value proposition on both sides,” Mr Matteson said. 

Other webinar speakers include Underwriting Agencies Council CEO Jenny Bax, Xceedance business leader for key accounts in Australia and New Zealand Prateek Vijayvergia and Insurance News managing editor John Deex. 

Mr Vijayvergia says technology is the common thread in agencies’ success, and how it is used is “the secret sauce that differentiates one agency from the other”.  

Technology trends including optical character recognition, robotic process automation, artificial intelligence, large language models and the cloud are described as business enablers.  

“The true art is in actually knowing where to apply technology and how,” Mr Vijayvergia said.  

Agencies have more freedom to test and fail, they can “rise to the top” quickly if things go their way, and innovation and the application of technology comes naturally, he says.

The role of underwriting agencies is expected to continue expanding as specialised product knowledge and technology adoption fuel growth. 

Ms Bax says the “sexy end of insurance” is in the agencies space, and it offers innovation, professionalism, technology that’s “second-to-none” and swift responses.

Agencies can provide a more nuanced customer experience by teaming with best-in-class technology partners, she says.

“These partnerships, from an agency, technology and investment perspective, complement each other, expanding services beyond traditional insurance products, enabling a move into new customer markets, and creating opportunities to launch new and innovative products that benefit all parties.” 

Access the webinar here.

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