Managing general agents (MGAs) may have carved out their niche in Canada’s commercial insurance market through specialized products and agility, but panelists at the National Insurance Conference of Canada (NICC) argued that their claims service is increasingly becoming a differentiator.
Pete Tessier (pictured left), president of the Canadian Association of Managing General Agents (CAMGA), noted that surveys have shown MGAs often score higher on claims service than incumbent insurers. He asked panelists whether this edge could endure – and what MGAs need to do to enhance their value proposition when the loss happens.
Tammy Parris (pictured centre left), assistant vice-president of corporate underwriting at HSB Canada, admitted that her company handles its own claims internally, but drew on her 11 years in claims to emphasize the critical role of expertise.
“I see the value in claims experts, and we know they can make a significant difference in resolution speed, decision-making, and thoughtful analysis,” she said.
For HSB, keeping engineers and inspectors closely involved in equipment breakdown claims is non-negotiable. Still, Parris argued that MGAs with strong claims specialists can raise the bar for the entire market.
“There is a huge opportunity for claim specialists to continue to grow with the MGAs and provide that service. I think it just elevates the rest of the industry’s claims departments – what are they doing that’s setting them apart, and what can we learn from them?”
Sean Duggan (pictured right), senior vice-president of special risks and claims at KRGinsure, agreed that MGAs often bring something different to the table when claims hit.
“I see the claims processing and response from MGAs to be a little more nimble,” he said. Part of the difference, he argued, is cultural. “It all starts with a mindset that claims is your brand, and those are words to live by as an MGA, because that will help enhance the client experience and differentiate the broker in the eyes of the client.”
Duggan acknowledged that the broader claims landscape has become more challenging since COVID-19, with increased complexity, delays, and under-resourced departments across the industry. But he said MGAs that treat claims as central to their identity – and invest in the right technology to reduce friction – have an opportunity to stand out.
“Even if you execute perfectly, a claim is still a negative, disruptive experience for the client,” Duggan said. “You’ve got to take friction out of that claims transaction. If you’re making investments and bets around technology to help do that, which MGAs seem to be doing, there’s a lot of value to be added.”
When the panel shifted to technology, Parris said MGAs have made notable progress but face the same challenge as the rest of the industry: keeping pace with fast-evolving tools while managing cost pressures.
“I’ve seen a lot of progress with technology,” she said. “MGAs know their business really well, and they rely on the tools that make sense for them. But the data doesn’t always come to us in consistent formats. Some aren’t as nimble as others, so there’s always an opportunity to build out those systems. Technology is hard, it’s expensive. Kudos to those MGAs that can really work within those budgets to continue to expand their knowledge and bring the best solutions.”
Stephen Stewart (pictured centre right), president and CEO of Stewart Specialty Risk Underwriting, said carriers’ long-running struggles with outdated platforms have given MGAs an inherent edge.
“A lot of carriers are saddled with legacy systems that they’ve been trying to update for years, and by the time they get one implemented, it’s already outdated,” Stewart said. By contrast, MGAs, many of which are newer entrants, can design systems around the here and now.
“If you’re an MGA, you’re looking at very specific segments or a specific area of the economy, and you can tailor your system to that,” he added. “It’s probably more nimble than it otherwise would be. There’s just a systemic advantage there.”
Duggan said MGAs also excel at the broker-facing side of digital tools, but warned that back-end processes still need work.
“I think MGAs do very well on the front-facing digital tools side – e-binders, portals, real-time quoting,” he said. “But there’s room for improvement with back-end integration. We’ve had hiccups with clients in claims reconciliation, where multiple subscribers were using different systems, and that contributed to extended timelines. Ultimately, the claim got paid, but it became a challenging experience to manage client expectations.”
