Problem Solving with MGAs.

Co-interview with Artur Niemczewski and Danny Maleary

Hot of heels of Pro’s recent announcement of its acquisition of VibeMM, Artur Niemczewski, CEO of Pro Global and Danny Maleary CEO of VibeMM discuss how MGAs will define the future of insurance in this co-authored article.

The march of the managing general agents (MGAs) is going strong – so strong, it is now one of the fastest growing sectors within insurance.

With their innovative approaches to underwriting and distribution, geographical reach and technology-first mindset, is it any wonder that MGAs are at the top of almost all strategic agendas as carriers and other risk capital partners look to grow into areas they previously thought were unattainable?

This is something Pro has known to be true for some time and the recent acquisition of MGA incubator platform Vibe MGA Management (“VibeMM”) is testimony to the joint belief the MGA business model will be at the forefront of what insurance will look like in the future.

The deal is complimentary for both parties for several reasons, but we are focussed on accelerating growth for our clients by being in a stronger, better position to offer a broader range of services to this area of the market.

Our scope as a combined entity has now catapulted our MGA offering from primarily front end business structure services (VibeMM) to complete cradle to grave fulfillment (Pro), as well as broadening the scope geographically with the simultaneous launch in the US.

These are exciting times.

MGAs to order

Entrepreneurialism is in the DNA of MGA businesses and for us, it is our shared ambition to leverage this directly through our MGA to Order initiative.

As well as being able to service entrepreneurs who want to set up a new business and are searching for capacity, the MGA to Order model allows us to complement this and work with both existing and new carrier clients from global specialty re/insurers, to help build MGAs to fit their specific strategic initiatives.

This is where we can come in. In a world where it is rarely the case where one size can fit all, we believe this to be a valuable service which, in addition to providing clients with a whole new strategic outlook, can also help them look at opportunities on a global basis they might not have previously been able to see, or have access to.

The MGA of the future

Against a backdrop of soft rates and declining premium, the strategy has to be about looking for profitability in other areas and we believe the MGA business model to be the answer to a lot of our client needs.

Product innovation in this space is also an attractive element of MGA businesses. A lot of the new start-up MGAs that we see are linked to new risks, especially around technology. We believe there are many great opportunities for carriers and brokers to break into new areas, broaden distribution options, geographic presence and/or market segment in a specific class through the MGA structure.

Working with an MGA can also enable a more traditional business test out new technology for either underwriting or distribution purposes before it is rolled out more widely.

A successful MGA is one that is redefining what insurance is really about for the customer – making that customer journey more efficient and relevant.

If managed correctly, the MGA model can be embraced in so many different ways and will define a whole range of success stories.  In the long standing tradition of the London insurance market, MGAs look for reasons to underwrite a particular class or line of business rather than not underwrite it, and the newly formed Pro MGA Solutions Ltd combines complementary skills and experience that allow capital to be brought to bear speedily and efficiently.