MGA capacity: Lloyd’s or company market?
The issue of Lloyd’s versus the company market as a source of capacity for managing general agents (MGAs) was the topic of a panel discussion at the 2022 MGAA conference in London.
Moderated by Ant Gould, director and head of content at Full Circle Communications, the panel consisted of Peter Montanaro, market oversight director at Lloyd’s, Phil Ost, head of personal lines at Zurich and Roshan Choolhun, head of Exponential.
Montanaro said that one of the advantages of Lloyd’s was that it is a market, allowing greater choice in terms of negotiations between different parties. He added that Lloyd’s was the whole package, able to supply a wide range of compliance and regulatory advice as well as access to assets like the Lloyd’s Market Association.
Ost said that the company market also has a strong offering for MGAs, with financial strength, high ratings, longer term arrangements and deeper relationships.
Choolhun underlined that there can be a lack of understanding about smaller risks, with the danger of some risks not being covered due to inconsistencies in the market place due to a top-down approach. He added that the market also needs to realise that other insurance hubs apart from London exist. He added that MGAs need to make their data more available to players like Lloyd’s and the company market.
The panel agreed that it was important for triage in making decisions on covering risks, with a need to make decisions quickly and with a real understanding of exactly what is being covered.
Montanaro admitted that Lloyd’s still has a way to go in terms of the payment of some claims, but stressed that it knows that this is an issue and that it is dealing with it and that it will improve.
Finally the panel agreed that communication between all parties - MGAs, Lloyd’s and individual companies - was vitally important for the market as a whole.
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