Cunningham Lindsey teams up with AUS on MGA solution
Cunningham Lindsey, the global loss adjusting, claims, management and risk solutions firm, has launched MGA Guardian, a range of services for managing general agencies (MGAs) supported by Ambant Underwriting Services (AUS).
The services on offer include the provision of a support structure to ensure regulatory compliance, in particular with the new conduct risk and Lloyd’s reporting requirements. MGA Guardian also provides a range of back office functions, including underwriting and claims reporting systems that today’s professionally run and compliant MGAs require.
The key benefits of the MGA Guardian include: full administrative support; a regulatory umbrella and support in FCA license applications or achieving Lloyd’s coverholder status; access to experienced and long-term investors who will support initial working capital costs; full claims management services; 24/7 help lines; and real-time claims reporting providing access to carrier, MGA and clients on all claims activity.
Leo Gibbons, global specialty markets director, Cunningham Lindsey said: “The MGA model is a fundamental aspect of underwriting in the London insurance market, with nearly £5 billion in gross written premiums generated through MGAs alone, and 39 percent of Lloyd’s business is written under delegated authority.
“As regulatory scrutiny increases, particularly conduct risk reporting within the Lloyd’s market, capacity providers want to be reassured that the MGAs they support have the appropriate infrastructure, claims handling and compliance procedures in place, to successfully manage their business portfolio.
Gibbons said Cunningham Lindsey want MGA Guardian to be the partner of choice for MGA capacity providers, MGA investors and underwriting teams to ensure robust, compliant systems that support the underwriting function.
“The services are designed to allow MGAs to focus on delivering their business plans, safe in the knowledge that their business infrastructure and regulatory reporting is fit for purpose, in addition to having full claims portfolio visibility,” he added.
Chris Butcher, chief executive officer of AUS, commented: “We’ve brought our expertise to complement that of Cunningham Lindsey to launch MGA Guardian. Their international claims management and loss adjusting skills plus their ability to offer conduct risk compliant reporting, adds to the core launch and host facilities we provide.
“AUS specialises in getting MGAs up and running quickly and effectively, then supporting them successfully as they grow. Our solid track record and strong reputation in the market is proof of this.”
Underwriting teams or investors in start-up MGAs do not need to relinquish equity in their business to obtain the required regulatory framework or support services when using he MGA Guardian model also, according to Cunningham Lindsey. It said other MGA models can require up to an 80-90 percent equity stake in the MGA, in return for providing a compliant route to market.
Peter Staddon, managing director of the Managing General Agents' Association welcomed the proposition.
“Rigorous and disciplined underwriting models are key aspects of building an effective and profitable MGA business,” he said.
“We welcome any initiatives which enable delegated authority business to access support services that ensure their expertise isn’t compromised while meeting current and new operating standards.”
