Whilst offering many tangible benefits to insurers, managing general agents (MGAs) are often misunderstood and can be squeezed from all sides in a soft market. II asked a number of experts in this sector how MGAs are looking to overcome these challenges.
Insurers have benefited greatly in recent years from relationships with managing general agents (MGAs)—whether it has been through access to new, more specialised markets or in helping them reduce costs.
“If an insurance company wants to move into a specific market, but doesn’t have the relevant expertise in house, it might consider working with a relevant MGA,” says Alasdair Stewart, head of corporate development and general insurance at the Chartered Insurance Institute.
“For this reason, MGAs most commonly operate in niche areas, such as financial risks. An MGA can provide specialist expertise and access to a new market without the time and overheads involved, should the insurance company develop its own in-house function.”
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MGA, CII, PowerGuard Specialty Insurance services, MGAA, Equinox