2015 UK Insurance Distribution: The Role of MGAs
MGAs are becoming more established within the UK insurance distribution model, both within personal lines and commercial lines. Here we explore how the MGA sector has changed over the last few years and how we expect it to change going forward.
Reasons To Buy
- Identify where MGAs can offer you growth opportunities.
- Understand which insurers are using MGAs to drive growth.
- Are MGAs growing in number and which products are they offering?
- How is the FCA responding to the growth in MGAs?
- Which insurers are backing MGAs?
The rise in broker-owned MGAs has had a profound impact upon growth within the MGA market.
Greater regulatory focus is now being placed on MGAs as their marked growth has drawn further scrutiny and interest from the FCA.
- Executive Summary
- MGAs have the potential to be a "third force" in the UK insurance market
- Key findings
- Critical success factors
- The Role of MGAs
- MGAs can cover a range of functions and services
- MGAs are based in two camps
- Specialist MGAs service niche lines of business and offer specialized underwriting expertise
- Generalists are effective at accessing remote markets and being responsive
- MGAs are beneficial for insurers and brokers
- MGAs provide insurers with access to markets that are difficult to enter
- MGAs have a fiduciary duty to the insurer, not the policy holder
- MGAs have the potential to soften the impact of EU regulation
- The needs of brokers are well served
- MGAs Are Becoming More Established
- MGA growth is defined by a number of market factors
- MGAs are underwriting a considerable share of GWP
- MGAA membership has seen a dramatic increase over the last few years
- Regional MGAs play their part as well
- Favorable conditions have spurred broker-owned MGA growth
- The industry is striving for best practice
- Closer regulation of MGAs is expected
- Solvency II will drive MGA status
- The work of the MGAA has been pivotal for the market
- A number of issues still exist for the market
- Intensifying competition is a key challenge for MGAs
- Gaining trust among insurers is critical for MGA success
- Regulation needs to accommodate the growth of MGAs
- Abbreviations and acronyms
- Verdict Financial's 2015 UK Commercial Broker Survey
- In-depth interviews with industry experts from the UK MGA market
- Further reading