US MGA market growth beats P&C insurance sector
The managing general agent (MGA) and programme markets in the US have continued to outpace the growth of the rest of the property-casualty market in 2017, according to a new study by investment firm Conning.
“Conning’s ongoing analysis of MGA-Insurer partnerships found 2017 direct premium growth at almost 7 percent higher than the prior year, and well in excess of the overall property-casualty market growth of 5 percent,” said Matt Sternat, a vice president, insurance research at Conning.
“The increased growth rate was driven by strong interest in the programmes sector, robust rate gains in both commercial and personal auto lines, and growth in the exposure base. While there have been some challenges to certain lines of business, MGA principals remain optimistic in their outlook for program business,” Sternat noted.
The Conning study, “Property-Casualty Managing General Agent: The Golden Age Endures” presents the MGA marketplace dynamics, trends, players and outlook. Conning’s MGA database includes information on more than 600 active and reportable MGAs and 275 insurer groups that actively use the MGA channel.
Steve Webersen, head of insurance research at Conning, commented: “Our analysis found that 21 of the top 25 property/casualty insurers reported MGA relationships, and those largest insurers represented more than 60 percent of the non-crop MGA premium.
“Among the 100 largest US commercial lines insurers based on direct premium, fully 55 percent reported an MGA relationship in 2017. Clearly, insurer demand for this channel and the risks accessed through MGAs continues to be strong,” Webersen added.
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