A survey conducted by Weecover at an event with industry experts reveals that 43% prioritize technical rigor over premium growth.
Technical profitability is consolidating as the main strategic priority for Managing General Agents (MGAs) in the current context of the insurance market, which is marked by pressure on margins, the hardening of capacity conditions, and the need to improve operational efficiency. This is evident from the survey conducted by Weecover, the insurtech specializing in technology for the insurance sector, during our recent digital meeting with experts and executives from the MGA field.
Specifically, 43% of the survey participants indicated that their main directive is driven by the need to achieve technical profitability, even if this means reducing or cleaning up their portfolio. Following this, 30% point to premium volume growth as a priority, while 17% prioritize reducing acquisition costs, and 11% focus on diversifying into new lines of risk. These figures reflect a change of cycle in the insurance sector, where the focus is shifting from accelerated growth to business sustainability.
Jose Nuñez, Country Manager of Lloyd’s Europe in Spain and Portugal, reinforced this vision during the event by explaining the stance of capacity providers: “The insurer doesn’t want to see red numbers; what they seek is a sustainable business that yields profit. If a managing general agent does not demonstrate technical rigor and starts underwriting at a loss, the capacity tap is simply turned off.”
For his part, Jordi Pagès, CEO and Co-Founder of Weecover, asserts that “the sector is entering a phase in which profitability and operational efficiency are non-negotiable. Many entities are still struggling with manual processes that limit their ability to scale. In this environment, technology is no longer an option, but the differentiating factor to compete.”
Technology, Profitability, and New Models
In the technological realm, the consulted professionals clearly identify where the brakes on their growth lie. 36% point to manual internal processes (especially in underwriting and quoting) as the main obstacle in their day-to-day operations.
This challenge is followed by a lack of agile integration with distributors through APIs (28%), as well as difficulties in reporting and data extraction (19%). Additionally, 17% acknowledge that reliance on legacy systems or custom developments limits their adaptability in an increasingly competitive environment.
This scenario reflects a structural shift in the insurance sector, where profitability, automation, and operational agility are consolidating as strategic priorities. In this context, MGAs are being forced to rethink their operating models in order to scale efficiently and respond to new market demands.
In parallel, the growth of models such as embedded insurance is opening up new opportunities for insurers and distributors, allowing them to access new distribution channels and improve conversion at the point of sale. The direct integration of insurance products into digital platforms, from eCommerce to financial services, is facilitating greater personalization and a more seamless user experience, aligned with the expectations of today’s consumer.
The insurance sector is moving towards more efficient, digital, and connected models, in which process automation and integration with distributors will be key to improving competitiveness. In this environment, embedded insurance is consolidating itself as one of the main levers to transform insurance distribution and optimize both the user experience and business profitability.
