00:01 Insurance Business TV recently attended the 25th annual TMPAA Annual Summit in Scottsdale. While there, we met with leading insurance professionals to address some of the top challenges facing the industry today.
00:17 I’m here with Matthew Jones, head of business development and transparency ventures as MS Transfer.
00:26 The special events market is evolving rapidly with Currys, MGA moving towards hyper niche verticals. What are some of the underlying market forces driving this trend toward such specialized programs?
00:40 So I think what we’re seeing here is probably a return to the roots of the MGA market. If you think back to when the NGA market started many years ago, it was driven by very experienced qualified specialists in given segments or sub-segments who were leaving a traditional carrier and setting up their own business and developing a reputation for a particular level of expertise in that given niche.
01:04 And so that’s probably a good example of what we’re seeing again. Now, over the last few years there has been a big change in more mainstream business going into the MGA market. And believe me, I think it’s not going to change. This will continue.
01:23 But I think what’s really happening right now is technology. The first is that technology is enabling access to areas that were inaccessible several years ago.
01:38 Then the second thing is that there is a proliferation of data that was not available earlier that can now be taken into account and taken into account when it comes to underwriting that sector.
01:47 And so the combination of a segment becoming available and then a segment becoming underwriteable is driving this rejuvenation of interest in specific segments.
02:01 Okay. Thank you. So I wonder if we talk about market fragmentation and certainly about underserved risk classes. Are you seeing a change in these expectations and demand for more tailored solutions?
02:14 I don’t think it’s really about expectations changing, but I think it’s about expectations rising. Ultimately, the insured is the one who pays the premiums and it is the responsibility of the insurance market to respond to the evolution of those expectations over time.
02:30 But I certainly see that there are some things that are becoming more and more important for the insured. The first is that the insured wants to know that when they are interacting with their insurance provider they are dealing with a genuine expert in that particular field.
02:46 They also want to be able to get coverage really quickly, and if you’re going to do that responsibly in the insurance market, you have to work with experts.
02:55 But they also want to know that at the point of the claim, they’re dealing with someone who doesn’t have the technical ability to evaluate the claim and make decisions and decisions about it.
03:07 I think they often want to know that they’re working with someone who’s got a deep appreciation for that category, potentially more of an emotional understanding of that kind of customer, that person or business.
03:22 But at the end of the day, whoever takes that claim and puts it in the context of that topic, that’s what’s going to be more and more important to people.
03:27 Okay. Thank you. In many of my conversations I talk about how people in our industry are becoming more and more important. It’s becoming more complex and, as you’re saying, having a real deep understanding of these specific markets to be able to understand and explain those challenges to their clients.
03:44 Yes, that’s absolutely correct. So from our perspective, it is a combination of not only the individual but the individual with technology.
03:52 One of the steps we took at MS Transverse last year was to integrate our partnerships group with our venture investment activities.
03:59 So when we’re deploying capital on the investment side, it gives us a better understanding of what’s happening in terms of technology and we take those learnings and insights and apply them into our valuation of an MGA that might target a particular sector.
04:15 Okay. Thanks Matthew. Thanks for talking insurance business with me.
04:20 Thank you very much. Thank you.