The HNW market has faced a challenging couple of years, with a number of high-profile players being put into run-off over the past eighteen months. Reflecting on the current state of the market, Insurance Age asks the question, ‘is it really high-noon for MGAs in upmarket personal property?’
We believe MGAs still offer a compelling proposition, but as our Private Clients Team Manager Victoria Blanche states in the article:
“Brokers do have to do a little research. They should check who provides the MGA’s capacity, and how long they’ve been serving the market. The first few years are always a bit more risky as the MGA hasn’t built up the historical claims data and reserves to ride out a massive loss.”
Claims costs in the HNW market are steadily increasing, and we’re still seeing high levels of underinsurance, with various reports suggesting anything between 75-80% of HNW clients being underinsured. Against this backdrop, it’s not hard to see why the market faces challenges. Our ability to underwrite case by case, and support brokers to try and combat the market issue, adds that additional level of service to our loyal broker following to ensure the right outcome when a claim occurs.
The article highlights the three reasons brokers may favour the HNW model; service, expertise, and pricing, and Victoria agrees:
“MGAs can often provide a better, more responsive service, with faster turnarounds compared to a lot of insurers - that makes a huge difference to busy brokers. We’re experts in this market, employing quality technical underwriters who understand the delicacy of the HNW sector.”
Iprism has invested in building a strong team of expert HNW underwriters, who offer unrivalled levels of service to their broker partners. With a long history in this market, we believe that the MGA model is perfectly suited to supporting brokers and their high net worth clients. Victoria finishes:
“MGAs that have proven their expertise in the market, with strong, experienced capacity provision and good historical data, are still key factors with the ability to adapt to market changes to ensure profitability and longevity.”
Read the full in-depth article here.
Find out more about Iprism’s Private Clients Insurance here.
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