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In tough times, leveraging the expertise and access to risks that many managing general agents possess can be an enticing prospect for insurers, as Intelligent Insurer discovers.
“MGAs are more like jet skis. If the market is turning and they see an opportunity, they are able very quickly to adapt. That is their real strength.” Peter Staddon, MGAA
An agile and lean managing general agent (MGA) market may help insurers respond to a soft market which makes finding profitable growth a challenging quest. While the MGA players are optimistic about the growth prospects, not all companies are performing well, as data aggregated by Intelligent Insurer show.
The historically low interest rate environment has attracted investors looking for yield to the insurance sector, increasing the capacity in the market and putting pressure on rates. The absence of large losses has further reduced rates and impacted underwriting profitability.
MGA, Managing General Agents’ Association, Lloyd's, Growth, Towergate Underwriting Group, Peter Staddon, UK, Europe, North America