Instec eBook Suggests Challenges Brewing in Program Business Press Releases| Nov 14, 2017

Naperville, IL – November 14, 2017 – Instec recently released an e-book that suggests managing general agents (MGAs) are in a unique position to ride the wave of new opportunities in program insurance, but cautions challenging times may lie ahead. 

The new publication, titled The Managing General Agent: Threats and Opportunities in the Darwinian Economy, describes an insurance market shaped by an oversupply of capital and commoditization of technology. These two forces, the author suggests, have lowered barriers to entry, creating a hypercompetitive environment called The Darwinian Economy.

Program insurance has indeed been a bright spot in an otherwise lackluster insurance market. The e-book cites recent statistics that show program business growing at more than quadruple the rate of the broader commercial P&C market. Impressive, but program growth actually dropped significantly in 2016 compared to prior years.

“We see the soft market as the new normal, and program writers aren’t immune to its challenges,” said Kevin Mason, Executive Vice President at Instec.  “The MGAs and carriers we see thriving in this environment are those that know their market niches well and can underwrite profitably while applying technology for competitive advantage.”

The e-book places a particular emphasis on technology as a game changer for MGAs. Technology can enable fast and cost-effective delivery of products, and is often central to a carrier’s decision when selecting an MGA partner. Bringing technology in house, and selecting the right systems, can provide MGAs with a competitive advantage.

“The MGAs we’ve worked with have been magnets for new business,” said Mason. “One in particular landed a significant book of business this summer from a carrier that saw the MGA’s platform as a more efficient way to manage their business.”

The e-book is available now, and can be downloaded from Instec’s website.

About Instec

Instec’s unique approach to systems for the insurance industry enables P&C carriers, MGAs and MGUs to launch programs and specialty offerings from start to first quote in as little as four weeks. With built-in bureau content and reusable business rules, Instec systems provide a platform for innovation with reduced risk. In addition, cloud-based deployment and subscription-based pricing enable insurers to test new programs at a low cost of entry and scale up affordably as the business grows. To learn more, visit


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