A cash injection may be on the way for the UK insurance industry – and from a somewhat unlikely source. According to a senior industry figure, Nordic insurers are setting their sights on UK shores, planning to enter the market by setting up managing general agencies.
The play is basically a circumvention of the forest of stringent regulations facing overseas insurers wanting to set up in the UK, but for brokers keeping their ears close to the ground it could mean chunks of new business.
“If you look at all the pressures and barriers to setting up in the UK, [these Nordic insurers are] finding it too much, so the conclusion is to use an MGA that can write on their behalf,” said Peter Staddon, managing director of the Managing General Agents’ Association (MGAA).
In an interview with Insurance Business UK
, Staddon said that he is in discussion with some “Northern Scandinavian insurers” that would like to step into the UK and are looking at setting up an MGA. He also said the MGAA is aware of a Danish insurer that wants to come to the UK. “Now Denmark is more in Europe than northern Scandinavia and so they’re looking at setting up a branch network, then joining the MGAA in the future in order to start working within the market,” he says.
The meat in the sandwich for brokers is that, according to Staddon, the Scandinavians and Danish both want to come to the UK for the same reason: that the area they want to go into “hasn’t really been exploited.”