Optalitix, an underwriting and pricing InsurTech, has released independent research showing that MGAs need to overhaul their pricing and underwriting operations to stay profitable as market pricing softens and rivalry grows.
The report, ‘Pricing Transformation in MGAs‘, found that digitisation of pricing has shifted from intention to action, with over four in five MGAs either currently upgrading their pricing capabilities or intending to start projects within the coming 12 months.
According to the research, 35% of MGAs report that pricing transformation is in progress, 26% have already largely updated their systems, 22% expect to launch projects in the next year, and 54% feel they have advanced considerably over the last three years.
The study was conducted during March and April 2026 and drew on responses from 111 insurance professionals spanning insurers, MGAs and reinsurers, with MGA participants making up 21% of the sample. Its findings indicate that the MGAs leading the market in future will be distinguished less by their pace of growth and more by their ability to pair underwriting knowledge with technology and data, opening the door to AI-driven improvements in performance and profitability.
Commercial ambition, rather than regulatory demands, is increasingly what prompts spending on technology. A third of those surveyed named growth or entry into new markets as the main driver for investing in pricing technology, with competitive pressure trailing at 28%.
The research also challenges the assumption that transformation requires abandoning spreadsheets. Excel continues to sit at the heart of MGA operations, as 61% of respondents rely on it heavily alongside other tools, and just 4% have stopped using it altogether. What MGAs are seeking instead is technology pairing Excel’s adaptability with enterprise-grade governance, deployment and automated underwriting workflows.
On AI, respondents see a practical aid rather than a substitute for underwriting skill, with 39% viewing reduced manual work as its biggest benefit and 35% anticipating quicker underwriting processes. People, however, remain the largest obstacle to change: 25% point to insufficient internal skills or resources, while 18% see organisational change as the greatest hurdle.
Optalitix co-founding director Dani Katz said, “The market is entering a new phase. As pricing softens and competition increases, underwriting precision and operational efficiency are needed to create real competitive advantage. By connecting pricing, underwriting data, and workflows, underwriters can make faster, better-informed decisions, while spending less time on administration.”
Copyright © 2026 FinTech Global
