News and Events
The Hidden Cost of Repetitive Taks In Underwriting
Each underwriter performs 5 typical activities daily: assess risks, price, check compliance, communicate and monitor portfolio. While seasoned underwriters can often run assessments quickly, others rely on digital tools to support evaluation. Some tasks create more value than others.
For early- and later-career underwriters, repetitive tasks often feel like “part of the job,” but their true cost compounds over time, people, and revenue. Modern MGAs need smarter workflows and automation to grow fast and scale efficiently.
This article explores the hidden costs of manual processes and shows how automation and workflow tools can unlock resources, free up capital, and give newly founded MGAs a stronger foundation for growth.
Why Repetitive Tasks Are Costing MGAs Time and Money
Manual rekeying and duplicate data entry account for 25–30% of underwriting hours every week. Long and complex contract assessments often require at least four people before the contract is signed (underwriter, pricing, risk manager, and peer review).
By cutting just half of this used up time on the repetitive tasks, MGAs can save on launch costs in the first year alone. With technology costs falling, investment in the right tools early can achieve positive ROI within months rather than years.
The Impact on MGAs includes:
- Time Drain: valuable underwriting time lost to manual entry, duplication, and checks
- Talent Burnout: Repetitive work reduces job satisfaction and increases turnover.
- Opportunity Cost: Time spent on repetitive work and low-value tasks is time not spent on high-value risk assessment and client relationships.
Financial Consequences for MGAs
Newly founded MGAs may try to save on initial budgets by relying on spreadsheets or generic tools. This often leads to higher future costs:
- Increased Operational Expenses: More staff required to handle workloads; delayed investment in digital transformation
- Error Correction Costs: Manual processes introduce mistakes that require rework.
- Lost Business Opportunities: Slower turnarounds frustrate brokers and clients. In fact, 60% of brokers cite slow turnaround times as their top frustration with carriers and coverholders.
Automation & Workflow: A Smarter Alternative
Adopting smarter underwriting tools is not just about efficiency. It’s about long-term viability. Every hour saved translates into faster growth, stronger broker relationships, and more capital preserved for scaling.
Core Features That Save Time and Costs for MGAs
| Feature | How It Works | Business Impact |
| Data Entry Automation | Automates repetitive data input and validation | Reduces errors, speeds processing, and frees underwriters to focus on high-value tasks |
| Governed Workflows | Standardises approvals and enforces compliance rules | Ensures compliance without bottlenecks and reduces risk of costly mistakes |
| Centralized Platforms | Consolidates information from multiple sources into one system | Eliminates duplication, improves accuracy, and streamlines team collaboration |
Investing early in these tools allows underwriters to focus on high-value work while reducing repetitive tasks and hidden costs.
Why MGAs Should Act Now
Repetitive tasks quietly erode profitability, efficiency, and talent retention. MGAs that invest in automation and workflow optimization from the start can:
- Cut hidden costs
- Protect underwriter satisfaction and reduce turnover
- Accelerate growth and scale efficiently
The choice is clear: the right tools today protect margins and give MGAs a longer launch runway and stronger foundation for growth.
