According to Insurance Times’ Five Star Rating Report: MGA market 2022/23, the majority of brokers are now viewing MGAs as a viable alternative to traditional insurers and they have become an increasingly important subsection of the UK general insurance landscape.
Additionally, nearly a third of broker respondents said that over the prior 12 months they had increased the volume of risks they placed with MGAs. As MGAs become more vital, the topic of capacity is in the spotlight.
Commenting on this in a recent article in Insurance Times, Tim Quayle, Managing Director of OneAdvent, stressed that even though capacity is out there and available, the bar has been raised for MGAs to secure it.
Tim said:
“The bar for the minimum size and scale of an MGA will increase and that will ultimately see a lot of the small MGAs being hoovered up into bigger MGAs.”
But Tim played down the talk around a capacity crunch hanging over MGAs. In the article he added that:
“The insurance world is quite cyclical and there are certain classes of business that go through these cycles. So, there’s that natural cyclical state, but certainly we haven’t seen anything that suggests to us that there is a big capacity crunch that’s going to start really impacting MGAs.”
As these cyclical challenges arise, OneAdvent can provide the permissions you need to get started quickly, with specialist support services needed to set up your insurance markets, execute distribution agreements and navigate the complex regulatory landscape.
You can read the full article here:
In Focus: Are MGAs facing ‘additional challenges’ in securing capacity? (insurancetimes.co.uk)
Request a call back.
Let’s get the conversation started today.
Sign an NDA.
Take the first step in the next stage of your MGA business.
