Half of managing general agents (MGAs) are at the start of their digital/API transformation journey, according to new data by Root Platform, the API-first core platform for delegated authority insurance business.
Among its findings, the poll also revealed that only 20% of firms are “fully API-enabled”, with 40% “just getting started” and 10% merely “actively exploring” solutions. Notably, 10% of respondents indicated that digital transformation is not yet on their roadmap.
The findings highlight a critical gap in the market at a time when speed-to-market and partner connectivity are becoming primary competitive differentiators.
Charlotte Koep, CEO at Root, said: “These poll results are a sample of the market, and are representative of the growing demand we are seeing from the MGA sector for conversations around the applications and advantages of an API-first strategy.
“That’s because APIs have transformed countless industries by enabling seamless, interoperable, real-time digital experiences, and insurance is no different.”
Koep describes MGAs as the industry’s “real agents of change” – market makers well-positioned to test new products and AI capabilities – but warns that legacy infrastructure is holding many back.
Oliver Evans, Head of Growth UK at Root, commented: “From our conversations with MGAs and partners across the UK, it’s clear that many of the industry’s biggest pain points – slow onboarding, fragmented data, expensive product updates – have been accepted as ‘normal’ for far too long.
“With modular, API-driven infrastructure, these challenges become dramatically easier to solve, and due to their position in the value chain, MGAs are very well placed to respond quickly.”
Adding: “The most successful outcomes we see are when great MGA teams work alongside great technology. When that alignment is in place, integrations speed up, product innovation accelerates and entirely new distribution opportunities emerge that simply wouldn’t be possible on legacy systems.”
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