Over 300 fully fledged MGAs underwrite approximately £5 billion of the annual £47 billion UK general insurance market premium income. Their importance to the sector is considerable.
MGAs also have an excellent track record of profitability.
But what is an MGA? While the primary focus of an insurer is to obtain and maintain their risk-rated capital and a broker must obtain and service policyholders, MGAs rarely do either.
Classed as intermediaries for regulatory purposes, MGAs actually provide professional underwriting services on behalf of insurers who want to access niche markets without setting up their own distribution channels. At the same time they provide brokers with better service and a wider range of product and insurer options.
Unfortunately in the past their operating model was not always wholly understood by the regulators and other market bodies.
This was largely because until the MGAA was formed in 2011 the UK sector had no independent representation or voice unlike MGAs in other countries that are supported by organisations including the AAMGA
, Canadian United MGA Group
, South African Underwriting Managers Association
and in Australia through the Underwriting Agencies Council
The MGAA aims to represent and support 75% of the UK MGA market
. It also recognises that other professionals can provide valuable support to members in terms of knowledge, information and finance. In recognition of this role a limited number may apply for Associate Membership.
The MGAA is a not-for-profit organisation that works both within the professionalism framework of the Chartered Insurance Institute (CII) and observes its own code of conduct.
Further information about joining the MGAA or its activities can be obtained from our Contact page