Managing General Agents / Program Facilities
The MGA sector is one of the most dynamic segments of the U.S. and International property & casualty market. The continued expansion of start-up and incumbent MGAs is fueled by an ability to attract both significant investment and talented individuals, driven by the industry’s recognition of MGAs importance in allowing controlled and focused distribution of insurance solutions.
Well capitalized (re)insurers recognize that MGAs are a source of new business they may struggle to obtain through their existing channels. Private equity firms also see the MGA model as an efficient route into the (re)insurance market.
However, insurers, reinsurers, PE players – and MGAs themselves – all need to tread carefully before partnering up.
That’s where Aon comes in: helping our clients to make better business decisions. We are a professional services firm and capital advisor that connects stakeholders across the value chain to create a profitable match for all parties.
Rising MGA Direct Written Premium
The U.S. MGA segment experienced a significant premium boost from calendar year 2019 to calendar year 2020 – a result of the admitted market shifting more premium to MGAs, and MGAs themselves bringing new products to market. Rate increases also contributed to premium growth.
MGAs: A Market On The Move
A new report series on U.S. MGAs and why they’re a market on the move reveals that the U.S. MGA market has doubled in size over the last ten years to over $60B direct written premium. This compelling story has caught the collective imagination of investors, entrepreneurial talent and InsurTech start-ups expanding in this space when emerging risks seem to be multiplying across the economy, it’s critical that organizations understand how to match risk taking with new sources of capital. The report is based on Aon’s 2021 research and individual interviews with MGAs and insurers and focuses on:
- The MGA Marketplace and Model of Choice
- Diverse Capacity with New Sources
- MGAs in the M&A Spotlight
- Making MGA and Insurer Partnerships a Success
- Possible Outcomes from AM Best's DUAEs Assessment Criteria
Access the report below:
FP # 12868-22-AD Aon UK Limited is authorised and regulated by the Financial Conduct Authority for the provision of regulated products and services in the UK