Building disciplined, data-driven MGA partnerships for long-term growth

 AM Specialty’s Dominick Tassone explains why underwriting discipline, data integrity and long-term alignment with MGAs are central to success in the specialty market.

Key points:
Discipline shapes MGA strategy
Data quality drives alignment
Partnerships built for longevity

“At AM Specialty, we seek long-term collaborative relationships with MGAs built on mutual alignment around underwriting discipline and sustainable outcomes.” said Dominick Tassone, chief underwriting officer at AM Specialty, as he reflected on the company’s approach to the market. “It’s about finding the right partners. Our programmes aren’t designed for transactional, short-term gains; we’re interested in building sustainable partnerships that focus on underwriting profit rather than chasing top-line growth,” he said. 

Tassone’s 47 years in insurance have given him a clear understanding of what defines a successful managing general agent (MGA). “The relationship between carriers and MGAs is pivotal. MGAs serve as crucial intermediaries, possessing market knowledge, underwriting expertise and distribution networks necessary for carriers to tap into niche markets.” 

“Building and maintaining successful relationships is an art. It requires mutual trust, open communication and a shared commitment to underwriting excellence. We understand these relationships are not just transactional; they are strategic partnerships that need to be nurtured.”

ASIC continues to use a four-point framework when evaluating new MGA or programme opportunities:

Underwriting expertise: Individuals with deep knowledge in risk selection, pricing and portfolio management, backed by a proven performance.

Customised products: The policy form demonstrates tailored coverage solutions to address emerging or underserved risks, that offer differentiation. 

Specialised services: The agent and/or carrier offers added value such as advanced claims handling, risk engineering and digital servicing beyond the standard marketplace. 

Distribution channel: Product is efficient, often with technology-enabled distribution channels that minimise acquisition costs and enhance client reach. 

“Underwriting expertise is absolutely paramount,” Tassone stated. 

“It’s not just about experience, but whether the team making day-to-day decisions truly understands the importance of risk selection, pricing, the competitive marketplace and how decisions impact the bottom-line profit. We need to know their expertise aligns with ours as a carrier. If it doesn’t, the partnership won’t work,” he added.

“Our programmes aren’t designed for transactional, short-term gains; we’re interested in building sustainable partnerships.” 

Data handling at core of MGA success

Tassone is acutely aware of the increasingly important role of data, saying: “The way MGAs handle data is central to our partnership.

“We interact with our MGA partners on a monthly and quarterly basis to review a programme’s results including, but not limited to, loss ratio, pricing, changes to the competitive marketplace affecting a MGA’s programme niche and lastly premium results to plan.”

“We conduct regular monthly and annual audits to ensure MGAs remain aligned with our standards; it allows us to monitor performance proactively and manage the business in real time.” Sustainability, he explained, is all about alignment.

“We evaluate a programme’s historical premium, loss, pricing and limit trends and ask: Does this class of business align with our underwriting appetite? Can it deliver predictable loss ratios through market cycles? And does it bring strategic value through specialised claims management, strong loss control and a robust, dedicated distribution network?” 

“If an MGA’s programme plans to grow from $20 to $100 million in a short period of time without a structured and transparent plan, that’s a red flag for us. We want conservative growth which produces upward pricing, and predictable loss ratio results.”

Agility anchored in discipline 

A key strength of AM Specialty’s strategy, according to Tassone, is the alignment between its primary underwriting and reinsurance platforms. “The same team oversees both our primary underwriting and assumed reinsurance business,” he said. “This creates consistency across both sectors, and it allows us to pivot quickly when needed.”

For Tassone, flexibility without compromising profitability is the cornerstone of AM Specialty’s approach. 

In a competitive and evolving market, creating differentiation is vital for MGAs, according to Tassone. “It’s all about the details; we’ve recently launched a small tenant liability programme while expanding our distribution footprint with our pet insurance product. “We look for niches where we can retain a higher percentage of the risk and offer compelling value for our MGA partners and their valued clients.”

For Tassone, success in the MGA space comes down to relationships and transparency. “It’s a small community and building out reputation matters,” he said.

“We’re looking for long-term partnerships, not just short-term gains. That’s how we’ve built our success.” 

Dominick Tassone is the chief underwriting officer at AM Specialty. He can be contacted at: dominick.tassone@amspecialty.com 

For more news from the American Property Casualty Insurance Association (APCIA), click here.

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