Consumers want flexible on-demand insurance products, but ons of the stumbling blocks for MGAs and brokers can be getting on-demand capacity to match the needs of the market. Here’s some interesting news from the USA;
Dogan Kaleli, former Allianz executive, and author of the 19,000-member-strong Future of Insurance newsletter on LinkedIn, is pleased to announce the launch of Stere, a digital ecosystem designed to tackle speed-to-market, capacity sourcing and other challenges faced by managing general agencies (MGAs), insurtechs and embedded insurance programs in a hardening market.
The program business segment, with combined annual premiums for MGA/MGUs and embedded programs of $100BN and forecasted to reach $800BN+ by 2030, is ripe for technology modernization. The space is plagued by manual processes for capacity placement, inefficient post-placement steps, and a general lack of digital initiatives beyond basic process improvements.
“The launch of Stere equips program owners with a superior selection engine, pairing human intuition with well-designed technology to increase success rates and speed-to-market, while creating growth opportunities for capacity providers,” said Dogan Kaleli, CEO of Stere. ”Stere’s program placement platform, Stere P3, tackles the capacity sourcing challenges I experienced firsthand in my previous roles, and that the hardening market has now intensified.”
As Stere’s first available technology module, Stere P3 was designed in collaboration with program experts to increase program success rates by over 25 percent and to lower the carriers and reinsurers’ financial and time investment in program scouting by at least 50 percent. Stere P3 enables MGA/MGUs, insurtechs, and embedded insurance programs to source insurance capacity and access digital tools from top-rated participants. Via Stere P3, capacity providers, such as insurers, reinsurers, ILS funds, captives and brokers, access new, relevant opportunities with complete, easier-to-analyze submissions.
“The programs space is undergoing a renaissance, particularly in terms of digital transformation,” said Tom Gillingham, managing director and leader of MGA and MGU programs for NFP. “Improving customer experience, launching new products, creating process efficiencies, and using data to enhance underwriting are key areas of focus for managed programs. This has sparked the creation of a digital ecosystem to support MGA/MGUs, insurtechs and program managers, and we’re excited to be working with Stere to move the industry forward.”