MGAs thrive on delivering unique solutions for hard-to-place risks, with many companies quick to react to rapidly changing market dynamics. It is testament to the sector’s resilience and adaptability that despite the events globally over the last two years, MGAs are continuing to find new and innovative solutions to meet the changing needs of their customers.
Executive SummaryCharles Rowley, director of the delegated authority consultant DA Strategy, shines a spotlight on how the MGA market is developing as we head into 2022. He notes that it has been a challenge for some U.S. MGAs to expand London capacity during the harder market in 2021, going on to offer tips, such as tailoring approaches to each carrier as capacity restrictions slowly begin to ease in 2022.
What we have seen over the last year is some retrenchment of MGA business in London and a focus on developing core partnerships. What this has meant for the U.S. is that it has been a challenge for some U.S. MGAs to expand the London capacity in the way in which they might have wanted in the harder market. We do see that changing and are confident that the share of delegated business coming into Lloyd’s and London will pick up gradually again in 2022.
Looking at the U.S. market specifically, there are opportunities for U.S. MGAs to develop broader and deeper relationships with London carriers. This is on a significantly different basis than previously as there definitely is a requirement for those MGAs to be even more data-savvy, to have their analytics absolutely nailed and to be very clear on the value they bring to their carrier partners—not just in terms of distribution but also demonstrating how they focus on more profitable sectors of the business.
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