This text is a part of a sponsored sequence by dyad.
MGAs don’t battle to scale as a result of groups lack experience or work ethic. They battle as a result of their working mannequin quietly bleeds time—via rework, handoffs, knowledge clean-up, and handbook coordination that compounds as quantity grows.
That leakage is operational friction. And whereas expertise performs a vital function in lowering it, right here’s the uncomfortable fact many organizations miss:
Expertise solely helps when you perceive the place friction is definitely being created.
With out that readability, even one of the best platforms find yourself automating inefficiency as a substitute of eliminating it.
The Actual Value of Operational Friction
Operational friction doesn’t at all times present up as a line merchandise, however its results are measurable:
- Misplaced capability: Handbook steps and rework restrict what number of submissions a workforce can realistically deal with.
- Slower cycle instances: Delays scale back dealer confidence and win charges.
- Information inconsistency: Re-entered knowledge inevitably results in reporting gaps, audit threat, and downstream corrections.
- Strained relationships: When processes lack visibility, companions fill the hole with emails and follow-ups.
Over time, friction turns into normalized and we start to suppose that the established order is “simply how MGA operations work.” In actuality, it’s often an indication that workflows, programs, and expectations aren’t aligned.
The place friction tends to pay attention
Whereas each group is completely different, friction persistently clusters in three phases of the MGA lifecycle.
Submission consumption and underwriting preparation
Submissions arrive in different codecs, with incomplete or inconsistent knowledge. Underwriters and ops groups spend vital time normalizing data earlier than any threat analysis can start.
Duplication shortly follows: knowledge is copied into spreadsheets, programs, templates, and portals—every touchpoint including delay and growing the possibility of error.
Sign to observe: high-quality submissions wait behind low-quality ones as a result of triage is inconsistent.
Quoting and binding
In lots of MGAs, quoting workflows solely transfer ahead when somebody manually nudges them. Standing checks, follow-ups, and unclear possession grow to be the de facto course of.
At bind, lacking or scattered documentation creates last-minute scrambles, typically resolved via electronic mail reasonably than structured workflows.
Sign to observe: groups spend extra time coordinating work than finishing it.
Submit-bind servicing and reporting
Endorsements, renewals, bordereaux-style reporting, knowledge calls, and audits expose friction that’s been quietly accumulating since submission.
When knowledge have to be pulled from a number of programs, reconciled manually, and reformatted for companions, servicing turns into labor-intensive—and tough to scale.
Sign to observe: each coverage change appears like a small venture.
Measure earlier than you modernize
Many MGAs leap to instruments as a result of instruments really feel decisive. However expertise utilized to an undefined drawback hardly ever produces significant change.
Earlier than introducing new platforms or automation, take three foundational steps.
1. Map workflows as they really function
Deal with high-impact workflows—submission to cite, quote to bind, endorsements, renewals. Doc every step, handoff, determination level, and system interplay.
Pay shut consideration to:
- steps that depend on electronic mail to progress
- knowledge pulled from a number of sources
- pauses with unclear possession
- data recreated reasonably than reused
Contain underwriting, operations, compliance, and IT. Every sees completely different breakdowns.
2. Monitor metrics that reveal friction
You don’t want subtle analytics to start out—simply consistency.
Helpful indicators embrace:
- submission-to-quote time
- quote-to-bind ratio
- handbook touchpoints per coverage
- rework or correction charges
- submission hit ratio (quoted vs. obtained)
Begin by benchmarking towards your personal baseline, not the market.
3. Pay attention for friction alerts
Frontline groups, brokers, and carriers all expertise friction otherwise. Repeated standing requests, correction cycles, or late knowledge are signs of course of and visibility gaps—not communication failures.
How expertise helps—when utilized accurately
As soon as friction is clearly recognized, expertise turns into a pressure multiplier reasonably than a patch.
Efficient approaches share a couple of traits:
- Deal with high-impact bottlenecks. Resolve issues that compound throughout groups and volumes.
- Standardize handoffs and definitions. Clearly outline what “prepared” means at every stage and who owns the subsequent step.
- Cut back duplication earlier than automating. Automation magnifies no matter course of it touches—good or unhealthy.
- Use platforms and integrations to bolster self-discipline. Expertise ought to lock in enhancements, not exchange decision-making.
When utilized this fashion, expertise reduces cycle time, improves knowledge high quality, and permits MGAs to scale with out proportionally growing headcount.
Friction discount is a progress technique
Operational friction isn’t simply an operational inconvenience—it’s a constraint on progress.
MGAs that succeed long run are these that may:
- Transfer sooner with out dropping management
- Present dependable, well timed knowledge to companions
- Scale quantity with out scaling handbook effort
Expertise performs a central function in making that attainable—however solely after friction is known, measured, and prioritized.
Repair the method first. Then let expertise do what it does finest.
About Dyad
Dyad delivers software program and companies that powers fashionable insurance coverage processing and distribution. Click on right here to discover the options that Dyad has function constructed for MGAs, wholesalers, and Program Directors.
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