Context
The MGAA has released its report titled “Proceeding with caution: A survey of MGA and insurance carrier opinion on the state of the MGA sector”. The report looks at the state of the market and the MGA-insurer relationship and how Covid-19 has impacted on the sector.
Research for this report included a survey which sought the views of over 120 UK-based insurers and MGAs.
Key points to note
- Most carriers and MGAs agree that setting up a new MGA will be harder this year, but existing players feel secure.
- 64% of carriers and 66% of MGAs think the number of relationships will hold steady or increase in 2020, even in a hardening market.
- Over half of carriers say the impact on capital availability will be positive or neutral post Covid-19.
- Carriers will use MGAs to give access to new markets and provide technical insight and capability.
- 96% of carriers and 84% of MGAs believe the shift to electronic placement and data standardisation will accelerate as a result of Covid-19.