Welcome to MGAA Conversations, the latest addition to the podcast world, hosted by Mike Keating, CEO of the Managing General Agents Association. In this exciting new series, we delve into all things related to the rapidly expanding MGA (Managing General Agent) landscape. With a diverse array of guests from within the insurance industry and beyond, our aim is to explore the challenges, opportunities, and personalities shaping the MGA community. Expect engaging discussions with prominent figures in the industry, including CEOs and innovators, offering first-hand insights into the dynamics of the MGA market. From the future of distribution strategies, such as partnerships with brokers, to the impact of insurtech and AI on the industry, no topic is off-limits. Regulation is another key focus, as we navigate the evolving landscape of compliance and its implications for MGAs. Through candid conversations and expert analysis, MGAA Conversations aims to provide listeners with valuable perspectives on current issues and future trends affecting the MGA community. But it’s not all serious business – expect lively conversations, off-the-wall guests, and a touch of humour to keep things entertaining. We invite you to join us on this journey, share your feedback, and suggest topics and guests for future episodes. Don’t forget to subscribe to MGAA Conversations on your preferred platform so you never miss an episode. Thanks for listening!
Episodes
Monday Nov 25, 2024
Monday Nov 25, 2024
In this episode of MGAA Conversations, we welcome Gary Humphreys, co-founder and Group Underwriting Director at Markerstudy Group. Following the recently approved merger between Markerstudy and Atlanta, alongside a very successful year of M&A activity for the group, we spoke to Gary about the current progress of integration in the newly united company. He notes the importance of establishing a harmony of culture and customer journeys within the group, and a full-scale unification of systems and data. Gary argues that the personal lines market has stabilised and become healthily competitive following a period of turbulence in 2022-23, noting that MGAs will play an increasingly crucial role in speciality areas.
The key to this process will be data, and the establishment of sophisticated pricing models. To this end, Gary highlights that AI and machine learning are set to revolutionise personal lines, and the industry in its entirety. Given that the capabilities of AI modelling hugely outweigh the capacity of our best actuarial brains, it could easily consume vast swathes of insurance decision-making. Gary warns that while this technology can facilitate considerable efficiency, an overreliance upon it may sacrifice the very principle of insurance. Due to the lack of human element in its innerworkings, AI models may refuse to insure certain customers for any price. Thus, as we begin to collectively dip our toes into the murky water of AI implementation, there must be human oversight at every step. The regulator will undoubtedly keep a close eye on this process over the next few years. Yet, regulatory pressures are often accompanied by an inverse problem – protecting the human element with subjective, interpretable guidelines. Gary suggests that the industry needs broader collaboration to establish consistent regulatory standards and a collective understanding of the rules underpinning them.
Quote:
“I think [regulation is] probably the biggest single challenge for anyone operating in the insurance industry at the moment… as an industry, we need people like the ABI and BIBA and the FCA to work together to try and get as much commonality around the application of the rules as we can, so that you can have a consistent standard that people can report to.”
“It could be quite scary if you end up in a black box world where AI and machine learning is effectively doing all the decision making in the background. As we all know, the capabilities of the modelling are way beyond the capacity of our best actuarial brains. So, it's important that that's controlled, and it's not left to effectively turn into the decision maker in isolation. It's not beyond [AI’s] ability now to effectively price every individual separately, but that doesn't necessarily give good customer outcomes and fair value across a broad spectrum. The right technical price isn't always necessarily the best value or the right value for the customer. So, I think that's really going to focus the mind over the next couple of years as to how we harness the technology.”
Resources:
Markerstudy Insurance Services - https://www.markerstudy.com/
New Motor Insurance Taskforce - https://www.gov.uk/government/news/ministers-bring-together-industry-experts-and-consumer-champions-to-tackle-spiralling-costs-for-drivers
About the Guest:
Gary Humphreys is the co-founder and Group Underwriting Director at Markerstudy Group, the UK’s largest MGA, where he has worked across various departments for the last 24 years.
Gary’s LinkedIn Profile: https://www.linkedin.com/in/gary-humphreys-0404296/
About the Host:
Mike's extensive expertise in the insurance sector has allowed him to witness and adapt to the dynamic shifts within the industry. Throughout his 40 year career, he has navigated the traditional realms of insurers, brokers, and MGAs (Managing General Agents) across both Commercial and Personal Lines markets.
He has held Executive positions at AXA, Midas, UK General and most recently Insurtech start up Qlaims before becoming Chief Executive Officer at the MGAA in September 2020.
Mike is excited about the new MGAA podcast series, which aims to showcase key figures in the UK insurance industry and beyond, providing insight into the challenges and opportunities that the MGA industry encounters.
Mike's LinkedIn Profile: https://www.linkedin.com/in/michael-keating-230b8424/
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