MGAs: the new breed of insurtech firms

Managing general agents are partnering with insurtech firms—a trend that could transform the sector and the very nature of MGAs, Peter Staddon, managing director of the Managing General Agents’ Association, tells Intelligent Insurer.

Managing general agents (MGAs) are increasingly partnering with technology companies to become smarter underwriting vehicles, learning from insurtech firms while also leveraging their expertise and experience in the sector.

That is the view of Peter Staddon, managing director of the Managing General Agents’ Association (MGAA). He says that MGAs are carefully watching insurtech firms such as Laka, which is taking an innovative approach to the insurance market, challenging the conventional insurance model and potentially revolutionising the insurance business.

Laka groups cyclists together based on their lifestyle and behaviour. Everyone in the group is covered against theft, accidental damage, and accidental loss as well as vandalism. Any claims by the group are picked up by Laka, which splits the cost across the group members at the end of the month. An individual member pays a proportional share of the claims cost plus a fee for Laka. The amount changes every month but is capped by Laka around market rate.