The Earnix Blog: Resources for Insurance and Banking Leaders

Managing General Agents (MGAs) are facing increasing capacity challenges due to rising inflation, geopolitical instability, and evolving risk landscapes in the insurance market. To thrive, MGAs must enhance profitability and operational efficiency while leveraging technology and data-driven insights to strengthen relationships with insurers.

Generative AI (GenAI) is transforming financial services by boosting efficiency and personalizing customer interactions, supported by tools like copilots and large language models. Prompt engineering optimizes AI model inputs, enhancing decision-making and streamlining processes in areas like pricing and underwriting.

GenAI is becoming a crucial tool for improved decision-making, boosting efficiency and accuracy, driving better business outcomes, and enabling workers to focus less on routine tasks and more on strategic initiatives. 

Recent research shows that 74% of insurance companies still use outdated, legacy technology for pricing, rating, underwriting, and other vital insurance processes.  

This finding was reinforced in the Earnix 2024 Industry Trends report. While we asked the question slightly differently – “How urgent is the need for insurance operations modernization technology at your company?” – we heard similar feedback. The vast majority of insurers reported that this is a major challenge within their organization.