Matt Scott (pictured) has worn three hats in insurance: actuary, journalist, and now analytics lead as co-founder of Insurance Data Lab. That mix of number-crunching and narrative gives him a unique lens on performance.
“Having those two backgrounds - with the numbers from the actuarial side and the storytelling from journalism - I think it helps you understand the context around what the data is telling you,” Scott said. “It’s not just that something’s gone up or down. It’s about what it means in practice for brokers.”
That focus on practical impact - rather than raw results - is increasingly valuable as brokers face tighter regulation, margin pressure, and growing expectations from both customers and carrier partners.
Scott’s firm tracks broker performance across three core financial pillars: profitability, growth, and productivity. It’s the third, he says, that often reveals the most about a firm’s long-term prospects.
“We look at average turnover per employee and staff costs as a percentage of turnover,” he said. “It gives you a sense of whether people are in value-generating roles, or just keeping the lights on.”
While growth and profit can fluctuate year to year, productivity tends to reflect operational strength. “We see companies have great years and then struggle to replicate it. Often it’s because the efficiencies weren’t there to begin with.”
On the underwriting side, Scott applies a similar framework focused on consistency rather than short-term wins.
“We look at the combined operating ratio - current year, year-on-year improvement, and a three-year average,” he said. “That last one shows whether a company’s built for the long haul.”
For brokers assessing insurer partners, this can help cut through headline numbers. “It’s really easy to grow if you’re willing to lose money. You just slash your premiums. But that doesn’t help anyone - not you, not your client.”
Scott sees MGAs outperforming in several areas - especially speed, service, and sector focus.
“They often don’t have the legacy tech problems that big insurers do,” he said. “And they usually have a specific niche, which helps them really understand their market.”
MGAs also tend to offer stronger service levels - something Scott says shows up in broker feedback. “Not always, but generally, MGAs are quicker, more responsive, and easier to work with.”
He sees a clear trend: brokers with similar niche focus are increasingly attractive to buyers. “We’re seeing it in M&A - those specialist firms are in demand. People want that focus and that agility.”
With Consumer Duty shifting the regulatory focus toward outcomes, Scott believes customer experience metrics now carry real business weight.
“We’ve seen firms that are strong on experience also perform better financially,” he said. “If your customer’s happy, they renew. If you’re proactive, they don’t chase you. All of that reduces cost and drives retention.”
That connection, he says, is often underestimated. “Better service means fewer complaints, lower overhead, and faster claims settlements - all of which improve margins.”
And culture plays a defining role. “It’s probably one of the hardest things to measure,” he said, “but it’s one of the most important - from a relationship point of view, and from an acquisition point of view.”
For brokers looking to improve performance - whether in efficiency, experience, or growth - Scott recommends starting not with platforms, but people.
“Culture is the first one - having the right mindset and having that consistent across the business,” he said. “You need everyone pulling in the same direction, whichever that direction might be.”
Technology should follow strategy, not lead it. “It’s not about throwing AI at the problem. The answer isn’t always going to be tech,” he said. “It’s about solving the right problem - and using technology to help people do more valuable work.”
In a data-rich, margin-tight market, that’s the kind of efficiency brokers can’t afford to overlook.
