Optalitix, an underwriting and pricing InsurTech offering a low-code platform for insurers, reinsurers and MGAs, has released new research showing that managing general agents must overhaul their pricing and underwriting functions to protect profitability as rates soften and rivalry in the market grows.
The report, ‘Pricing Transformation in MGAs‘, is based on independent research commissioned by Optalitix, which surveyed 111 insurance professionals across insurers, MGAs and reinsurers during March and April 2026, with MGA respondents making up 21% of participants.
It found that the digitisation of pricing has shifted from ambition to action, with over 80% of MGAs either currently upgrading their pricing capabilities or preparing to launch projects within the coming year.
Breaking this down, 35% of MGAs report that their pricing transformation is in progress, while 26% say their systems are now largely modernised. A further 22% intend to begin transformation work within the next 12 months, and 54% feel they have achieved meaningful progress over the last three years.
The study indicates that commercial ambition, rather than regulation, is now the main force behind technology spending. A third of respondents pointed to growth or entry into new markets as their principal reason for investing in pricing technology, with competitive pressure cited by 28%.
The findings also challenge the assumption that transformation requires abandoning spreadsheets. Excel continues to sit at the heart of MGA operations, as 61% of those surveyed use it heavily alongside other pricing tools, and just 4% have moved away from it entirely. What MGAs are seeking instead is technology that pairs the flexibility of Excel with enterprise-grade governance, deployment and automated underwriting workflows.
On artificial intelligence, respondents see the technology as a practical aid rather than a substitute for underwriting judgement. Some 39% believe cutting manual work is AI’s biggest benefit, while 35% expect it to accelerate underwriting processes. However, people remain the largest obstacle to change, with 25% naming a shortage of internal skills or resources as the main challenge and 18% pointing to organisational change.
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.”
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