4. Markets. MGA Zen – The art of building a well-run intermediary

By David Plummer, Group CEO, Bluefriars Group

4. Markets

Anyone following the managing general agent, (MGA), broker, and quote-and-bind broker, (QBB), markets in recent years will appreciate the importance of stability of their preferred insurance market(s).

A balanced analysis of the last five years would suggest that macro trends have been positive, with the MGA market in the UK expanding to gross written premiums of over GBP 4.5 billion, or roughly 10% of the UK general insurance market, according to a recent paper by Clyde and Co.

However, micro trends have been less stable. Multiple carriers leaving and, to a lesser extent, entering the market has contributed to challenging conditions for both MGAs AND QBBs. There has also been a change of emphasis amongst some insurers when choosing the best means of distribution.

The traditional view is that establishing a binder / coverholder arrangement is the safest route to success. This can often still be the case, making the negotiation of binder terms critical to the success of many businesses. However, insurance technology, (Insuretech), continues to alter the market landscape, leaving a wider pool of underwriters available to senior managers open to less-traditional, more technology-driven means of accessing capacity.

Bluefriars has spent over a decade working with both new-to-market and innovative solutions. Most are driven by advanced InsureTech. As a specialist firm, we recognise that a one-size-fits-all approach is rarely the best possible outcome for our partners. Bluefriars adapts its approach to the preferred markets and the distribution model of its business partners.

If you have already established markets, we seek to optimise, rather than interfere. If you need help taking your proposition to market, then Bluefriars can access key decision makers with market leading brands to make your business plan a reality.

At Bluefriars, we can help risk assess, plan, and launch your big idea. Contact us at principal@bluefriars.co.ukto discuss potential markets and our free risk assessment of your big idea.

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