InsurTalk: Digital underwriting through the lens of MGAs with Michael Keating, CEO at MGAA
In this episode we continue the topic related to delegated authority and digitalisation of underwriting, but this time from a perspective of MGAs. As MGAs stand at the intersection of innovation and underwriting it is especially inspiring to learn how they harness technology to streamline processes, enhance risk evaluation, and navigate the ever-changing insurance landscape.
Our guest is Michael Keating, CEO at Managing General Agents’ Association and together we’ll explore how the members leverage digital tools, predictive analytics, and automation to not only expedite underwriting processes but also to improve accuracy and adaptability in a dynamic market.
Ewa Banaś: Hi, I’m Ewa Banaś and I’d like to welcome you to another episode of IT Insights InsurTalk series by Future Processing. This episode is quite special since it marks the end of the first season, though season two is coming soon. In this episode, we will continue the topic related to delegated authority and the digitalisation of underwriting. Today my guest is Michael Keating, CEO at the Managing General Agents Association (MGAA). Michael, thank you for inviting us here to your headquarters and agreeing to contribute to our insurtech series.
Michael Keating: Good afternoon and welcome. I am looking forward to having a good conversation.
Ewa Banaś: Before we move on, I’ve heard there is quite a story behind you and football. Could you give us an overview of what happened?
Michael Keating: Well, I don’t think I’ve told this story too often, though my friends might say I never stop talking about it. When I worked at AXA, they were the sponsors of the FA Cup, and we had the opportunity to play at Wembley Stadium prior to it being refurbished. In the game I played, I scored a hat-trick, and one of those goals was from 35 yards out. I have it on video if anyone wants proof.
Ewa Banaś: Wow, congrats! And how did you actually end up in insurance?
Michael Keating: Straight from school, actually. I think I am in the majority of people who “fell into” insurance rather than choosing it by design. However, having been in the industry for over 40 years, I wouldn’t change anything for the world. It is a great industry with a fantastic community and friends for life.
Ewa Banaś: To begin with an overview, how important is the MGA Market sector within the London Market?
Michael Keating: The MGA sector is the fastest-growing part of the UK insurance market. This is due to entrepreneurism, innovation, and underwriting expertise, leading to insurers having more confidence in deploying capital to specialist underwriters. If you look at Lloyds, they have over 3,000 cover holders worldwide and 600 UK cover holders, a large proportion of which are MGAs. The MGA community is now part of the fabric of the London Market, whereas 10 or 20 years ago it was a much smaller element.
Ewa Banaś: How did the old process of underwriting look in the past for MGAs?
Michael Keating: The biggest change is the insertion of technology. If you look at the “old school” with the quill pen versus what we have now, technology runs completely through it. This includes the electronic transaction of bordereaux, which should now be the norm, and moving away from paper-led binding of business. Technology removes frictional costs, improves communication between stakeholders, and allows for greater customer satisfaction, particularly in the claims process.
Ewa Banaś: This human touch is so crucial, especially in claims processing. I hear this at every single conference.
Michael Keating: You raise a very good point. I was at a claims conference recently where a survey showed that eight out of 10 consumers wanted to speak to a human and did not want to use a chatbot or automated response for triage. The message to the industry is that we need to combine technology with the human touch, looking for harmony and symbiosis rather than replacement.
Ewa Banaś: How can AI improve the underwriting process in the future?
Michael Keating: Many MGAs are already deploying AI for operational efficiency and productivity. For example, some members use AI to triage broker presentations to strip out irrelevant information required to price a risk, which increases the underwriting team’s productivity. However, AI in underwriting and pricing is still in its early stages. Experts advise that before investing, you must have a clear business plan and strategy. There is a danger of “wanting to keep up with the neighbours” and importing AI without a deployment plan. AI effectively mimics human behaviour; it doesn’t replace it.
Ewa Banaś: What would digital underwriting transformation look like from the perspective of an MGA versus a delegated authority capacity provider?
Michael Keating: They should be in harmony. When an insurer deploys capital to an MGA, it is a partnership. Both parties must be on the same page regarding digitalisation and AI, including management information, risk appetite, pricing, and claims. This ensures there are no surprises when binding business. The use of APIs allows everyone to look at the same data simultaneously. Having “one version of the truth” is vital so that discussions focus on profitable growth rather than arguing over poor or incomplete data.
Ewa Banaś: What is the “art of the possible” – the perfect Utopia of digital underwriting?
Michael Keating: Utopia would be a balance where electronic data exchange (risk assessment, pricing, etc.) works with underwriting intervention and operational efficiency. In this scenario, most of my time as a partner would be spent on profitable growth, development, and innovation. We would be relaxed knowing the “machines” are working at an optimum level, allowing us to focus on providing products and services to customers we have – and, more importantly, customers we don’t yet have.
Ewa Banaś: Thank you, Michael, for sharing your stories and use cases. And thank you to our audience for listening to another episode of IT Insights InsurTalk. See you in the second season.