The managing general agent (known in Australia as an underwriting agency) and program market continues to grow and remains a key business model for the property-casualty sector, according to a new study by investment management firm Conning.
“The MGA market has nearly doubled since 2012, when Conning began tracking this sector,” said Jerry Theodorou, vice president of insurance research at Conning. “The MGA market continued to expand in 2018 and early 2019, driven by numerous factors including MGA start-ups, insurers’ quest for blocks of business, and investment from private equity and MGA-incubator firms.”
The new study, Managing General Agents” The Super Model of the Insurance Industry, investigates MGA marketplace dynamics, trends, platers and outlook. Conning’s MGA database includes current and historical information on more than 600 MGAs and 275 insurer groups that actively use the MGA channel.
“There have been new entrants utilising the fronting model for MGA business,” said Steve Webersen, head of insurance research at Conning. “We also observe transformer models developing that are incorporating ILS or special-purpose vehicles within the fronting approach that will deliver even more growth to the sector.”