New data from Root Platform, the API-first core platform for empowering insurance, shows that half of managing general agents (MGAs) are at the beginning of their digital/API transformation journey.
A poll of MGA senior leaders conducted at Root’s recent market briefing revealed that 50% of attendees were still in the early stages of their digital/application program interface (API) transformation journey.
The survey results also show that only 20% of companies “fully support APIs,” 40% are “just getting started,” and 10% are only “actively exploring” solutions. Notably, 10% of respondents said digital transformation was not yet on their roadmap.
The survey results highlight key gaps in the market at a time when speed to market and partner connectivity are becoming key competitive advantages.
Charlotte Koep, CEO of Root, said: “These poll results are a sample of the market and represent the growing need we are seeing in the MGA industry to discuss the application and benefits of an API-first strategy.
“That’s because APIs have transformed countless industries by enabling seamless, interoperable, real-time digital experiences, and insurance is no exception.”
Koep describes MGAs as “real agents of change” in the industry – market makers that are well-positioned to test new products and AI capabilities – but warns that legacy infrastructure is holding many back.
Oliver Evans, Head of UK Growth at Root, commented: “From our conversations with MGAs and partners across the UK, it’s clear that many of the industry’s biggest pain points – slow onboarding, fragmented data, costly product updates – have long been seen as ‘normal’.
“With modular, API-driven infrastructure, these challenges become easier to solve, and MGA is well-positioned to respond quickly because of its position in the value chain.”
Adding: “The most successful results we see are great MGA teams working together with great technology. When this alignment is in place, integration accelerates, product innovation accelerates, and entirely new distribution opportunities emerge that were not possible on legacy systems.”