Untapped potential: Why are Australian MGAs leaving money on the table?
In the dynamic landscape of Australia’s insurance industry, Managing General Agents play a pivotal role. However, amidst the multitude of opportunities that the country’s homeowners, motorists, businesspeople, tech consumers, and more present, MGAs may be overlooking one of the fastest growing and most lucrative sectors.
That’s right, travel insurance.
As the Managing Director of battleface Travel Insurance in Australia, I’ve seen first-hand the maturation of the Australian market and the untapped potential that still exists for MGAs incorporating travel into their portfolios. That potential lies not only in the additional revenue stream that travel insurance provides, but in a variety of lesser-considered benefits that go far beyond the realms of holiday cover.
So, all of that begs the question: if MGAs are effectively leaving money on the table, what are the hurdles preventing travel insurance adoption? And how does a well-chosen partnership overcome them?
‘Plug and play’ travel insurance
One of the main concerns for MGAs I see again and again is the perceived complexity of integrating a new insurance product into an existing distribution framework. battleface’s ‘plug and play’ model is a particular point of pride for us, addressing this concern by offering a turnkey solution to what could be a highly technical process.
That means MGAs can expect a seamless integration of travel insurance into their existing portfolios, minimising operational disruptions and maximizing the speed at which the new offering can be rolled out to customers.
Of course, anyone versed in the everyday challenges of insurance knows that selling a policy is one thing, servicing it is something else entirely. That’s why we wanted to ensure partners had access to a suite of services, from customer enquiries to claims to emergency medical assistance and more, through our internal brand Robin Assist.
The future is specialised—and so are we
The insurance world is vast. And staying on top of every market shift in real time is not practical. We get it. But partnering with a travel insurance specialist, as opposed to a generalist, means you can be as hands off—or hands on—as you like.
Travel insurance is all we do here at battleface. That gives us unparalleled insights into the ‘journey’ a customer embarks on, from their very first point of contact to the settlement of a claim. Our sole focus is providing relevant products to travellers—and changing those products when the demand changes.
Being monoline also circumvents any conflicts of interest that may arise. If you sell pet, contents, auto or gadgets cover, relax; we’re not going to be in competition with you.
Customer acquisition through travel
The insurance industry is massively diverse and can seem like dozens of independently operating ecosystems at times. But zoom out and the connections become apparent—individual customers seeking to satisfy similar needs.
Travel insurance appeals to a broad demographic, incorporating everyone from backpackers to families, businesspeople to retirees. That allows MGAs to engage with customers who may not have considered their other lines. A well-structured travel insurance offering can serve as a gateway, enticing customers to explore the comprehensive suite of products you offer.
Impressed by the claims process during your Bali trip? Why not check out our auto cover? Pleasantly surprised by the ease of purchase? It’s just as easy for contents insurance!
Cobranded or White Label Options
Branding is an integral part of your overall business and, naturally, will trickle down to individual insurance products. The choice of how your company and products are branded, however, should never come down to the technical limitations of ‘off-the-shelf’ insurance.
Flexibility is key in the insurance industry and we wanted to ensure that MGAs could make branding choices based on their own strategic aims. That means the option to go cobranded or white label as you see fit, to align a travel insurance offering with your existing brand or present it as a standalone product.
Continuing the conversation
In the competitive landscape of Australia’s insurance industry, MGAs have a compelling opportunity to tap into a new revenue stream by incorporating travel.
Through forging partnerships with travel insurance specialists like battleface, MGAs can position themselves as industry leaders, meet a greater variety of customers’ needs and strengthen the appeal of their existing lines through brand awareness.
Want to know more? We’re always up for continuing the conversation here at battleface. Check out our Partner Corner or get in contact directly through LinkedIn.