Iprism in the news – what could be improved about the MGA/wholesale broker model?

We believe the position of the MGA in today’s market has never been stronger. With more dedicated, niche managing agents being established every year, brokers are spoiled for choice when it comes to finding a responsive, expert partner for their risks.

But what could still be improved about the MGA/wholesale broker model? This was the question Insurance Business posed during BIBA this year.

Gathering experts from around the market, including our CEO Ian Lloyd, they wanted to find out where positive change could be made to make the MGA more powerful than ever.

‘It would really benefit the industry if there was a specific regulatory regime or framework for wholesale MGA intermediaries.’

For Ian, having a dedicated regulatory framework for MGAs would be a significant benefit to our industry. He explained that whilst the regulatory does a great job of regulating retail brokers and insurers, what’s missing is a tailored framework for the MGA/wholesale broker model.

Reflecting the unique model

MGAs hold a unique position in the market. With the authority to underwrite and manage risks on behalf of our capacity providers, we have distinct responsibilities and operating structures compared to a traditional broker or insurer. Currently, MGAs are regulated under frameworks designed for brokers and insurers, which can lead to ambiguity, inefficiency, and gaps in oversight. By introducing a framework specifically tailored to MGAs, our industry would benefit from much-needed clarity, both for MGAs and for our insurer and broker partners. Regulatory clarity would also streamline compliance, making it easier for MGAs to understand and meet their obligations, whilst enabling regulators to supervise the sector more effectively.

Reducing friction

Another improvement we’d definitely like to see in the market as a whole is reduced friction in the quote process. Too often, brokers tell us that they struggle to get in touch with their MGA partner, or that the process of obtaining a quote is too disjointed, with a lingering “computer says no” attitude that often accompanies digital journeys.

We want to change that. We pride ourselves on offering effortless underwriting to our partners. We provide flexible insurance solutions that can be customised to meet the specific requirements of clients across the construction, property, and private client sectors, and our expert underwriting teams have the authority to make decisions in real-time. We can respond quickly to market needs, allowing us to develop innovative and effective products tailored to our clients.

Get in touch. What do you think could be improved about the MGA/wholesale broker model? We’d love to hear your thoughts.

Watch the Insurance Business TV ‘Big Question’ in full here:

https://www.insurancebusinessmag.com/uk/tv/what-could-be-improved-about-the-mgawholesale-broker-model-540171.aspx