MGA-specific regulations should address ‘mixed picture’ in claims oversight

It is crucial that any potential future regulation of the MGA sector addresses the issue of claims as it appears to be a “grey area for MGAs”.

This is according to Owen Pugh, chief operating officer at Claims Consortium Group, who told Insurance Times that currently the claims sector is a “mixed picture when it comes to oversight”.

He made the comments after Clyde and Co’s 2025 MGA Opinion Report, published on 3 July 2025, revealed that over three-quarters (77%) of MGAs believe the claims process with carriers needs improvement, up from 59% in 2023.

In response to these figures, Pugh explained that new regulation should be addressing whether the processes, accountability and communication structures in place between the carrier, the MGA and the claims service provider are supporting or hampering customer outcomes.

He continued: “Our experience is that the more an MGA is given responsibility and accountability for claims outcomes, the better the decision making and the customer claims journey.

“After all, the MGAs wrote the policies and understand the wording, the market conditions and nuances and also have insight into which third party administrators (TPAs) really understand their sectors.”

‘Wasted’ potential

As a provider of specialised TPA claims service to the insurance market, Pugh noted that Claims Consortium Group work with a range of MGAs that are enthusiastic to have more control and insight into the claims process.

“However, we also know that many MGAs have no or little choice over how claims are handled by their capacity provider’s in-house claims team or which TPA they can use,” he added.

“All of which ultimately means that their market specialism and insight, which was recognised when passing them the pen, is being wasted.”