‘Business as usual’ with MGA says group chief executive Alex Alway
Top-50 insurance broker Jelf is continuing to recommend Towergate Underwriting to its clients in the wake of Towergate’s financial troubles.
The £55.2m brokerage is the consolidator first to have publicly backed the managing general agent since Towergate warned of “uncertainty around operational cash flow and liquidity in Q1 2015.”
Towergate Underwriting transfers risks to its capacity providers, and so its chief executive Clive Nathan has stressed that all claims are covered from the moment the MGA accepts the risk and that client money is protected.
Group chief executive Alex Alway said: “We’re very supportive of Towergate Underwriting. We know Clive Nathan very well. From our perspective we want a strong broking sector. It’s business as usual.”
The move contrasts with network Brokerbility, which has recommended its members draw their attention to Towergate’s financial uncertainty and offer alternatives.
Arthur J Gallagher has also told its branch staff not to place new business with Towergate Underwriting, and to draw clients’ attention to information in the public domain at renewal and to make alternative options available if possible.
Commenting on Jelf’s position Nathan said: “We really welcome Alex’s comment and his support. That would be typical of the type of broker comments that we’ve had over the last couple of weeks.”