The CEO of the Managing General Agents’ Association (MGAA) has said MGAs are being increasingly recognised for the efforts made during the pandemic and will be on the frontline of the industry’s strategies to support brokers in meeting the challenges of emerging risks.
Speaking in Manchester at the BIBA annual conference, Mike Keating (above) said MGAs were flourishing and the changing risks faced by policyholders has highlighted the benefits they can deliver.
“MGAs are closer to the market and the brokers, and as such understand the way risks are changing,” he explained. “They also understanding the changing requirements from the customer.
“They have the ability to bring new products and change existing products far quicker than insurers. I am not criticising insurers, but they are larger entities and as such it take more time for internal processes to be completed and for changes to be made.”
As such insurers continue to be keen to invest capital into MGAs added Keating.
The move to greater ESG will provide another opportunity for his members to show his worth.
“We are seeing a move towards greener products and a drive towards more sustainability,” he explained. “There is a move toward a range of greener motor product for instance but the biggest issue will be the sustainability in the claims process.
“It is likely there will be work around the sustainability of the supply chain within the claims process and MGAs will need to be aware of the issues and the role they can play within the process. The move to greater ESG will be a challenge for the market.”
Keating added: “The pandemic was a terrible time for the country but MGAs rose to the challenges they faced. They maintained their service levels seamlessly, they were able to create and distribute new products, won new business and carried out successful renewals.
“For me the most encouraging factor as we emerge from the pandemic is that MGAs have been able to retain the loyalty of the new broker partners, they created over the past two years. They recognised the role MGAs played in helping them to meet the needs of their clients at the most testing of times.”
He added the future looks bright for the sector.
“Insurers remains focused on the cost of delivering products to market. With wage inflation affecting every part of the business community, insurers see the opportunity to deliver capital to MGAs in order to deliver products both cost effectively and faster.”
Keating and the MGAA team were in Manchester to meet with its membership and to speak to brokers to highlight the benefits the MGAs can deliver.
“We have a membership of 170 and it is growing,” he explained. “We are keen to highlight the benefits of what we as an association can deliver and the vital role played by our members.”