Your carrier just approved capacity for an exciting new specialty program. The rates are built in Excel. Now what? For most MGAs, this moment of opportunity quickly turns into a familiar dilemma: stick with Excel and accept its limitations, or embark on a costly, time-consuming journey to hard-code rates into the policy admin system.
It's a challenge that's becoming more pressing as the MGA market experiences unprecedented growth. Since 2018, the sector has doubled in size, with MGAs launching more specialized programs than ever before. Yet while the market has evolved, most rating processes remain stuck in the past, creating a widening gap between business ambition and operational reality.
The Real Cost of Manual Rating
The true cost of manual rating goes far beyond the obvious inefficiencies. Yes, there's the constant struggle with version control, the manual updates, and the lack of integration with other systems. But the strategic costs are even more significant:
- Development cycles stretching 6-9 months per program
- Implementation costs exceeding $100,000 per program
- Revenue lost to delayed program launches
- Manual workflows requiring data entry across multiple tools
- Strained carrier relationships due to limited data visibility
As more MGAs expand into specialty lines, these challenges compound. Each new program adds complexity, and the limitations of manual rating processes become increasingly apparent.
Why Traditional Approaches Fall Short
Many MGAs have tried to solve this through traditional approaches, with mixed results:
- Hard-Coding Rates: Hard-coding rates into policy admin systems may be the conventional path, but this process is expensive and time-consuming with near-zero flexibility once implemented.
- Legacy Rating Processes: Traditional rating workflows often rely on outdated processes that create significant challenges, including high upfront costs, complex implementations, and heavy IT dependencies. These workflows lack integration with related processes like underwriting rules or compliance tracking, requiring additional tools and adding to operational complexity.
The Rating Revolution with Coherent Spark
Forward-thinking MGAs are embracing a modern approach with Coherent Spark. Our solution transforms Excel-based rates into APIs in days, not months, and at a fraction of the traditional cost.
The results speak for themselves:
- Complex rating models deployed in under 30 days
- Seamless integration with existing systems and workflows
- Implementation costs reduced by up to 75%
- Zero disruption to existing operations
What Modern Rating Looks Like
Coherent Spark represents a fundamental shift in technology for MGAs. It preserves the familiarity and flexibility of Excel while delivering enterprise-grade capabilities for rating, rules, and more.
Your existing Excel models become production-ready APIs in days, enabling seamless integration with any policy admin system. And with a built-in test bed environment, MGAs can simulate rate changes, optimize underwriting logic, and re-rate policies. This allows for dynamic portfolio analysis to better understand current performance and align with growth goals.
The impact on your business operations is immediate. You can launch programs in half the time, scale without technology constraints, and maintain stronger carrier alignment through enhanced data visibility. Most importantly, you preserve the flexibility your underwriters need while gaining the enterprise capabilities your business demands.
Getting Started with Coherent Spark: FAQs
1. How quickly can Coherent Spark transform my rating models?
Coherent Spark can convert your Excel-based rating model into a production-ready API in as little as one afternoon, with full integration possible in 2-4 weeks depending on your internal IT team’s workflows.
2. How does Coherent Spark work with my existing systems?
Coherent Spark integrates with your current tools - think policy admin systems like Duck Creek and Insurity, for example. By connecting your rating logic directly to downstream tools, our platform streamlines workflows and helps you issue policies faster.
3. What kind of support does Coherent provide during implementation?
Our team can guide you through the initial model conversion process and provide best practices for deployment. While your internal IT team handles any required integrations, we’ll be there to offer guidance and support to ensure a successful implementation.
4. How does Coherent Spark handle updates and governance?
With Coherent Spark, you can update rating logic in real-time without IT dependencies. Our platform maintains version control, provides a single source of truth, and creates clear records of all changes to keep your rating process organized and compliant.
Future-Proofing Your Rating Strategy
As market conditions continue to evolve rapidly, MGAs need rating technology that can keep pace with change. Coherent Spark's adaptable platform ensures you have the agility to respond quickly to market shifts, while providing the transparency needed for data-driven decisions.
The ability to swiftly modify and deploy rating changes is no longer just a competitive advantage - it's a business necessity. With Coherent Spark, your rating technology evolves alongside your business, enabling you to launch new programs faster, adapt existing ones with ease, strengthen carrier alignment, and scale operations.
