An MGA is an agency whose primary function and focus is the provision of underwriting services and whose primary fiduciary duty is to its Insurer principal.
This method of operating is particularly concentrated at the SME end of the market, a potentially vulnerable class of customers, and includes compulsory classes like motor liability and employers’ liability. Some of the most important professional firms in the country buy their professional indemnity insurance through MGAs. The regulatory framework categorises MGAs as “wholesale intermediaries”. This can cause confusion.
The continuum below opposite shows the various trade associations which currently exist in our business environment. It demonstrates the need for a trade association that has a specific focus on MGAs. This need is essential because the other trade associations are polarised and are focussed solely on representing the interests of either a brokerage or a risk carrier.
We have developed a choice of membership options aimed at creating a collaborative network of MGAs, market practitioners and suppliers.