FIVE-STAR MGAs
Premium pricing remains the second most important factor for brokers when choosing an MGA, but performance-wise, it hasn’t yet managed to move past sixth place. However, the good news is that the overall score for premium pricing has remained pretty much the same: 7.99 this year, compared to 8.00 last year.
Those who found pricing satisfactory took into consideration the fact that they’re working with hard-to-place risks. Brokers acknowledged that “pricing is fair for the most part, but they are still high on certain sectors,” and “it’s due to markets and the type of risks, so [there’s] not much to be done.” Others said they’re more willing to pay a higher premium when they can spot certain advantages, such as good response time and product selection. On that note, a few respondents mentioned the need for better pricing for special events/events liability, as well as property exposures that can get quite expensive.
Some brokers also noted that having additional fees on top of the premium can make it seem like prices are too expensive. One broker suggested that MGAs “incorporate the underwriting fee into the premium, instead of charging it separately,” while another recommended applying “tiered fees [that] may be more effective at different premium price points.”
Brokers also came through with several suggestions that could make pricing seem more competitive, such as providing value-added services like direct billing, ensuring policies are issued and sent through together with the premium notice, offering more exclusive products, and exercising flexibility.
