Context
In the latest episode of MGAA Conversations, Stuart Reid, Chairman at Partners& and PIKL, explores the challenges and opportunities facing MGAs in the current market and what the future holds for MGA-broker relationships.
Key points to note and next actions
- Despite ongoing economic and regulatory challenges, the market is full of opportunity for MGAs, brokers and insurers. The continued innovation of new technology and the development of new products to protect against emerging risks were highlighted.
- Relationships between capacity providers, MGAs and brokers continue to strengthen, creating more opportunity for collaboration across the sector.
- Despite the insurance industry being viewed as ‘old fashioned’ with regard to diversity and inclusion, progress is definitely being made.
- Challenges to the sector include significant recent regulatory changes, such as the increased focus on the Consumer Duty, further requirements for Non-Financial Misconduct information and the current economic uncertainty. These conditions are limiting access to capacity for some businesses, e.g. small, new InsureTechs.
When asked about his predictions for the future of the MGA sector, Mr Reid concluded: “I really do believe that MGAs will rise and rise in importance”, adding that brokers and MGAs owning capacity from insurers may become an increasingly common trend.