Fusion's Cavanaugh and ChainThat's Acharya on digital distribution, adaptable platforms and data utilisation

Fusion MGA CEO Michael Cavanaugh and ChainThat CEO Vikas Acharya have emphasised the need for digital distribution, adaptable platforms and effective data utilisation to stay competitive in an evolving landscape.

Speaking to The Insurer TV, Cavanaugh highlighted the growing significance of digital distribution, especially in the commercial lines space: "Digital distribution is the easiest way to get to the individuals."

He also noted that this trend is gradually permeating the commercial lines business, necessitating the development of products with technology in mind.

According to Cavanaugh, "We have to get back to the idea of, ‘What product am I going to build to fit that model, to fit the technology?’"

Adaptable platforms

Acharya stressed the importance of adaptable platforms for insurance companies, particularly in light of the industry's increasing reliance on technology: "To support business agility, you need to have a platform that's adaptable and flexible."

He also mentioned the need for insurers to support seamless connectivity and data augmentation, enabling insurers to enhance the underwriting experience while maintaining data quality.

“I think it's quite important for insurance companies to think not just about the product and product rollout – which is important, obviously, that's the business – but also to have a technology platform that supports the agility of the business,” Acharya added.

Streamlined underwriting through technology

Cavanaugh provided insights into Fusion MGA's unique approach to cyber underwriting, which he says is centered around leveraging technology to streamline the process.

"What we've done is taken that model, and we've thought about how we can streamline the process by thinking about the underwriting and finding platforms that allow us to make these changes," he explained.

Cavanaugh emphasised the importance of building products with technology in mind to simplify the underwriting process and enhance the customer experience.

Harnessing data for informed decision-making

Acharya elaborated on the strategies employed by ChainThat to effectively manage and integrate data from multiple sources, “ensuring that the platform that we have is actually underpinning the data at the heart of it".

Acharya highlighted the importance of platforms that facilitate the seamless integration of disparate data sources to enrich the underwriting experience and empower insurers to make informed decisions.

The impact of technology on business models

Both Cavanaugh and Acharya noted the transformative impact of technology on their respective business models and the broader insurance industry. Acharya also noted the role of technology in enabling companies to adapt to changing market conditions and drive growth: “The ability to scale the business and enable them to launch a new geography, new markets and new products seamlessly – that can't happen without a proper investment in technology.”

Cavanaugh echoed this sentiment, advocating for collaboration with partners who share a tech-forward mindset to drive success in the digital era.

He also noted that “technology is at the core of everything we do" and that insurers must invest in technology to scale their businesses and adapt to changing market conditions.

“Our perspective is that using technology, or at least accounting for the technology, and all aspects of that are key to making it successful” said Cavanaugh.

Watch the full 12-minute interview to learn more about transformational digital distribution.