Optalitix Report: 83% of MGAs Prioritize AI and Pricing Transformation to Combat Softening Markets

Quick Summary

New research from Optalitix reveals that 83% of MGAs are actively pursuing MGA underwriting transformation to combat softening markets. By integrating AI and modern pricing platforms, these firms aim to automate manual workflows, enhance precision, and drive profitability through data-driven decision-making in an increasingly competitive landscape.

How is AI Transforming MGA Underwriting Performance?

MGA underwriting is undergoing a fundamental shift as firms move from manual administration to AI-driven efficiency. According to the Optalitix report, 39% of insurance professionals view AI primarily as a tool to reduce manual work, while 35% expect it to significantly accelerate underwriting processes. Rather than replacing human expertise, technology is being used to augment the decision-making capabilities of experienced underwriters.

• 35% of MGAs have already commenced pricing transformation projects.
• 26% of firms report having largely modernized their core pricing systems.
• 54% of respondents claim significant progress in digital maturity over the last three years.

The focus is now on creating a unified digital workflow that connects disparate data sets. By automating routine tasks, MGAs can focus their human capital on complex risk assessment, ensuring that operational efficiency becomes a core competitive advantage as market cycles shift.

Why is Pricing Transformation Critical for MGA Growth?

The primary driver for pricing technology investment has shifted from regulatory compliance to commercial market expansion. The research indicates that 33% of MGAs invest in new tools to facilitate growth into new markets, outpacing competitive pressure (28%) as a motivator. This suggests that modernized pricing capabilities are now viewed as the engine for scalability and geographic reach.

Interestingly, the transition does not signal the end of traditional tools. 61% of MGAs continue to use Excel extensively, highlighting a demand for platforms that offer enterprise-grade governance while maintaining the flexibility of spreadsheets. The goal for 83% of the market is to achieve underwriting precision through integrated platforms that support cloud-hosted APIs and real-time data modeling.

What Barriers Prevent Successful Underwriting Modernization?

Despite the clear benefits of MGA underwriting technology, human factors remain the most significant obstacle. 25% of respondents identified a lack of internal skills or resources as their primary challenge, while 18% pointed to organisational change hurdles. Success in the next phase of the market will depend on how well firms manage the cultural shift toward data-centricity.

FF NEWS TAKE:

This report from Optalitix proves that MGA underwriting is no longer just about risk appetite; it is about technical infrastructure. The fact that 83% of MGAs are prioritizing pricing transformation suggests a massive industry pivot toward efficiency. Those who fail to integrate AI and automated workflows will likely be squeezed out by more agile, data-empowered competitors. This absolutely moves the needle for the insurtech sector.