Brokers distribution found to be the most important partnership for MGAA members
The Managing General Agents’ Association (MGAA) has used the Biba Conference to today reveal the results of the first ever survey of its membership.
Highlights included that 84% of MGAA members write their business via brokers.
Members are writing in excess of 150 different business lines and have a strong international footprint, with 35% of the membership’s combined gross written premium relating to international business written from the UK.
In its report, the MGAA said the growth of MGAA membership had largely been possible due to supporting the changing needs of brokers.
Peter Staddon, managing director of the MGAA, said: “This report demonstrates the ability of our members to deliver increased market access for brokers and new opportunities for capacity providers.
“It also shows the importance of the MGA/broker relationship, with a large proportion of our members trading via brokers.”
The MGAA formed in 2011, and currently has 136 full members writing over £6.1bn in premiums, representing a significant proportion of the UK MGA market. The MGAA estimates there are over 300 MGAs in the UK overall, writing over 15% of the UK’s £50bn general insurance market premiums.
Other findings included that membership ownership structure is predominantly private, with 15% owned by brokers, and 10% owned by insurers.
The main lines written are professional indemnity, public liability, employers’ liability and commercial and residential property owners.
But almost half of members (46%) are using their own bespoke underwriting systems, which the report said was due to the requirements of the many niche areas members also operate in.
There are 150 capacity providers supporting the members. Lloyd’s plays an important role, representing over 40% of the total – 65% of members are Lloyd’s coverholders.
The association’s chair, Charles Manchester added: “Our report provides a clear and in-depth picture of the scale and reach of our membership, representing a significant proportion of the UK MGA market.
“These entrepreneurial businesses are ideally placed to maximise opportunities for brokers and insurers but need to ensure they continue to deliver value in what continues to be challenging market conditions.”
In addition to the 136 full members, the MGAA also has 37 market practitioners representing the insurer and capacity provider markets and 64 supplier members providing legal, compliance and regulatory, IT and claims solutions to this sector.
Data was gathered from 122 of the 136 members during 2018, concluding in November 2018.
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