Confidence in the MGA sector has improved despite the pandemic and is now at its highest level in three years, according to a new survey from global law firm Clyde & Co. In fact, 69 percent of MGAs and 33 percent of carriers said they expect partnerships to increase in 2022.
What are companies looking for in a partner?
Carriers are seeking strong performers that can add value in niche markets, with 60 percent citing this as a top three requirement of their MGA partners. Meanwhile, the majority of MGAs (89 percent) want carrier partners that can offer capacity stability and longevity. Both carriers and MGAs said they value technology expertise and data mastery to ensure good risk selection and pricing, with a whopping 100 percent of carriers and 89 percent of MGAs citing it as important.
While the majority of both MGA (84 percent) and carrier (74 percent) respondents said the pandemic has had a neutral or positive impact on capacity, it has highlighted some coverage issues:
- 80 percent of carriers and 56 percent of MGAs said that focus on wordings has increased following the pandemic.
- 87 percent of carriers and 67 percent of MGAs think the claims process needs improvement, particularly faster communications, clearer processes and automation of lower-value claims.
See the full Clyde & Co. report here: 2021: A year of renewal for MGAs?