MGA–carrier ties will be redefined by AI

AI can give MGAs sharper insights, speed and stronger reinsurance ties while keeping humans in control, says DGTAL CEO.

Key points:
MGA–carrier relationships transformed by AI
Human in the loop remains vital
Tailor made AI agents deliver 99% precision

Artificial intelligence is moving from buzzword to business driver, and MGAs are uniquely placed to capture its benefits early. 

For Arndt Gossmann, CEO of DGTAL, the timing could not be more critical. “Agility plus AI is a winning formula for doing insurance business,” he told Baden-Baden Today. MGAs’ closeness to the market and lighter legacy systems mean they can often adopt innovations faster than larger insurers weighed down by transformation challenges.

Yet Gossmann stressed that AI was not simply about efficiency but about reshaping the MGA–carrier relationship. 

“The level of information exchange and the involvement of the capacity provider, with regard to both underwriting and claims management, becomes ever more intense. 

“The flexibility, which makes MGAs so incredibly successful, is going away if you have additional complexity in the workflow, as the level of interaction with the carrier increases” he explained. 

AI, he believes, can solve this tension by providing real-time transparency, reducing duplication and enabling insurers to see the data they need without constant back-and-forth and parallel assessments on both sides.

The same principle applies to product innovation. Because many MGAs design their own solutions, AI can help them fine-tune tariffs and underwriting conditions with much greater precision. 

“With AI, you have far more and far superior aspects to analyse to fine-tune your products and become better in the underwriting and claims management side,” Gossmann said. For him, AI is an accelerator that allows MGAs to turn agility into sustainable advantage.

However, he is also clear that AI alone cannot carry the decision-making burden. “I’m a big fan of hybrid,” he said, emphasising the importance of human-in-the-loop approaches. AI should be “deeply implemented into the workflow” to prepare, analyse and process information, but the ultimate call rests with experienced underwriters and claims specialists. 

By supporting experts rather than replacing them, AI increases both speed and quality. “If you can put more cases in front of your top people because they’re supported and seconded by AI agents, this is a huge advantage. Faster decisions, better decisions.”

As Baden-Baden turns attention to capacity, Gossmann sees AI as a decisive factor in MGA pitches to reinsurers. “It makes a difference if you can provide better performance data and better background on the portfolio you underwrite. Reinsurers will reward the new data transparency. That’s it,” he stated. 

By generating deep portfolio analytics and demonstrating corrective action where needed, MGAs can prove their risk management credibility. Those who can provide granular portfolio insights will not just attract capacity; they will secure more competitive terms.

Looking ahead, he argued that AI agents would be the next frontier. Last year, DGTAL committed to switching its entire technology platform onto AI agents, and this is quickly becoming the topic across the industry. If you operate tailored AI Agents within the workflows, the gains are impressive.

“If you just use large language models, you get around 70% in accuracy. If you use AI agents, you reach 95%. If AI agents optimised into a workflow, you get more than 99% accuracy.” 

Combined ratio improvements of up to 10% are being observed by the few that made this step. For Gossmann, the metaphor is clear: “If you have a Formula One car and you put it on a little farm street, it will not show its full performance. AI agents are the same: you have to put them on the racetrack if you want to achieve the full impact.” 

This racetrack is the operational workflow, where underwriting and claims meet the realities of data, speed and accuracy. Faster and more accurate insights help insurers and MGAs to engage in a less friction-laden partnership. “Insurance companies that run AI tools with MGAs can become significantly successful in their relationship. That’s a win-win,” he claimed.

The message to MGAs is clear: lead with agility, and with technology. Those who embed AI into their workflows and boardroom discussions will not only enhance transparency and efficiency but also sharpen their competitive edge in the eyes of reinsurers. 

As Gossmann concluded, “At some point in time, you will only get reinsurance when you can provide a much deeper element of data. We’re not there yet, but great for those who are able to give better portfolio information… they will benefit and reward.”

Arndt Gossmann is the chief executive officer and co-founder of DGTAL. He can be reached at: a.gossmann@dgtal.io.

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