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Third-Party and InsurTech Risk: Governing Vendor and MGA Relationships in a Fast-Moving Market

1 hour ago
2 min read

The Challenge

US insurance technology spending is projected to rise significantly in 2026, driven in part by expanding InsurTech and MGA partnerships that now extend underwriting, distribution, and claims functions well outside a carrier's direct operational control. Each of these relationships introduces its own data handling practices and operational risk.


Regulators increasingly expect carriers to demonstrate active oversight of these relationships, not just point to a signed agreement. When a delegated authority partner's controls fail, the carrier remains accountable to policyholders and regulators alike.


The Solutions

A resilient third-party risk program treats MGAs, TPAs, and InsurTech vendors as an extension of the carrier's own risk and compliance environment, with oversight scaled to how much authority each partner holds.

  • Risk-tiered due diligence and monitoring for MGAs, TPAs, and InsurTech vendors

  • Centralized third-party risk registers giving leadership one view across every partner

  • Ongoing performance and compliance monitoring built into the vendor relationship, not just at onboarding

  • Delegated authority audits calibrated to each partner's scope of responsibility


How REDE Consulting Is Helping

  • Designing third-party and MGA risk assessment and oversight frameworks

  • Building vendor risk registers integrated with existing GRC tools

  • Supporting delegated authority audit programs for MGAs and TPAs

  • Advising on governance structures for InsurTech partnership and data-sharing arrangements

About REDE Consulting

REDE Consulting is a specialized Integrated Risk Management (IRM) and Governance, Risk & Compliance (GRC) advisory firm serving insurance carriers, MGAs, and InsurTech companies. We help insurers translate a complex, state-by-state regulatory landscape, spanning NAIC model laws, climate risk disclosure requirements, and emerging AI governance expectations, into practical, auditable programs that protect policyholders and reduce regulatory exposure, while freeing underwriting, claims, and compliance teams to focus on the business.


Get in Touch

If your organization is looking to strengthen its IRM/GRC program, REDE Consulting can help you assess your current maturity, close critical gaps, and build a framework that scales across every state and line of business you operate in.


Reach out to our team at evita@rede-consulting.com to schedule a consultation and learn how REDE Consulting can support your insurance risk and compliance strategy.

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