How can MGAs benefit from optimizing their compliance processes?
For MGAs, modernizing their compliance processes is essential to working with carriers to reduce time to issuance on new policies.
Often when a producer is missing the credentials they need to be authorized to sell, the operations team or the compliance team doesn’t find out until it’s too late. They typically find out when the carrier refuses to pay commission to an unauthorized agent–or worse when they’re fined by state regulators.
So, MGAs can avoid these issues by making the process of managing their producers more efficient by using a compliance management system.
How can MGAs simplify their existing compliance processes?
If an MGA only has one selling agent, they could just track compliance details using a spreadsheet and things wouldn’t be too bad. However, as the producer count grows, that spreadsheet starts to become a hassle. If your organization has hundreds or even thousands of producers, and then we add in the extra multipliers like multiple jurisdictions or product types, keeping track of the details becomes a full-time job. So, to simplify their processes, MGAs should look for a system that can verify producer credentials using trusted sources of data. This allows the operations team to get access to the most accurate information and proactively addresses authorization issues if necessary.
And having built in workflow integrations allows proactive authorizations to be happening automatically so that issues can be detected early in the process instead of after it becomes a fire drill.
What is Sircon?
Vertafore’s Sircon product line is built to cover all aspects of distribution management for organizations of all sizes. As a result, your team can spend less time on administrative tasks and have more capacity to grow the business. If you’re an MGA looking for an easier way to ensure your producers are compliant before there’s an issue, Sircon should be on the top of your list.
How can MGA Systems users benefit from partnering with Sircon?
Sircon offers a suite of distribution management solutions solely focused on helping organizations in the insurance industry manage their compliance requirements for their producers.
MGA Systems users benefit by using Sircon products because of their integration capabilities, which allow users to make the most of their producer data.
Teams can configure Sircon to work with existing MGA Systems set up and immediately start finding out whether their producers are authorized to sell. While an MGA user is processing policies, The system is automatically making requests to verify the authorization status of the producer.
The Sircon platform then looks at all the agents’ up-to-date compliance information, compares that with up-to-date regulatory rules and provides a single answer. Either yes–the agent is fully authorized to represent this line of business for the company, or no–this agent or agency is not authorized, and here’s what’s missing. The key part of the integration is that this request gets negative answers in front of the operations or compliance teams that need to solve the problem, and it’s doing it before this becomes a critical issue down the line.
Learn more about trusted insurtech solutions by Vertafore.