PRICING

PRICING

FIVE-STAR MGAs

Pricing wasn’t quite as big an issue for brokers this year as it was in 2018. Last year, 65% of brokers said that pricing was one of their top considerations when choosing an MGA, second only to underwriting responsiveness and turnaround time, but this year, just 45% of brokers named it a top consideration. Even with the drop-off, however, pricing still ranked among brokers’ top three concerns.

“It would be appreciated if policy fees could be negotiated”

MGAs saw a slight dip in broker sentiment regarding their pricing this year, scoring an average of 7.64 compared to 2018’s score of 7.99. Sixteen MGAs earned five-star status for their pricing this year, just shy of the 17 that earned the honour in 2018.

“Prices have been increasing significantly,” said one broker, while another noted that while “pricing is fair, policy fees seem high. It would be appreciated if policy fees could be negotiated.”

Some brokers, however, said that even when MGAs tend to have higher prices, the extra cost is often worth it. “Pricing [is] a little higher than most MGAs, but they have products that no one else will cover,” one broker said.