Which way now? Is the UK MGA market at a crossroads?
About the report
12 October 2020
UK & Europe
We are pleased to present our second report on the managing general agent (MGA) market - and one which is set against a backdrop that could not be more different than our first.
Last year, our first research among MGAs and carriers made it clear that the Lloyd's market reform programme was having the desired effect. The market, which had been perceived by many as supporting under-performance and inflated costs for far too long, had a sense of increasing caution. Over two thirds of MGAs and carriers agreed that they were heading into a more competitive environment. A tight focus on quality also meant that capacity was in short supply, and for many small MGAs, Brexit still loomed large.
This year's report, which is based on a survey and interviews with leading insurance carriers and MGAs, provides an update on the state of the market and the insurer-MGA relationship. It looks at the impact of COVID-19 on the sector and the future of London and Lloyd's as the preferred markets for growing and developing an MGA business.
Our survey shows that while the overwhelming majority of carriers and MGAs agree there will be more competition for capacity and a real flight to quality, they do not see the volume of capacity or the number of partnerships diminishing. In fact, broadly two thirds of MGAs and carriers believe relationships will hold steady or even increase and over half of carriers believe the impact of COVID-19 will be neutral or even positive for MGA capacity.
Jennette Newman, Partner, London
Two thirds of carriers and MGAs think the number of relationships will hold steady or increase in 2020, even in a hardening market.
Key findings - at a glance
Proceeding with caution
Becoming more demanding
Lloyd's reform agenda sees choices crystallising