Rating Solutions for Managing General Agents

This document is a guide that outlines the various rating solutions utilized by Managing General Agents (MGAs) in the insurance industry. It emphasizes the importance of having a rating tool that supports the entire policy life cycle, rather than just providing quotes. The text discusses the dependency of MGAs on the Insurance Services Office (ISO) data for pricing risks in commercial and personal lines of insurance. It details common rating tools and practices, including ISO-based raters, custom rating tools, and comparative raters, along with their respective benefits and disadvantages. The guide also highlights considerations such as versioning, update management, and the need for real-time connectivity with third-party systems. Security is noted as a critical factor when selecting a rating system, especially due to the frequent access of web quoting applications to these solutions. Overall, the document serves as a comprehensive resource for MGAs to evaluate their rating options.