This interview was published by Insurance Edge and is shared with the kind permission of the publication
It’s been a while since Insurance Edge (IE) has spoken to Danny Maleary, CEO of Pro MGA Global Solutions, , so BIBA 2023 was the perfect opportunity to catch up with what’s new in the world of MGA services for brokers who want to scale up and extend their reach.
IE; So let’s talk MGA support Danny, I guess you need a slightly different approach for brokers, depending on where they are on their growth journey? What’s the feeling like post-pandemic, is investment making a strong comeback?
DM; Yeah it is very positive out there now after the pandemic. We found the pandemic was an initial shock in some ways, with everyone in the broker community getting used to Teams and Zooms etc. but it was also a very productive time too. For us at Pro MGA Global Solutions we have picked up about 15+ new clients over the last 2 years or so, it’s been a very fruitful time.
The appetite for creating a new MGA is very much there, we are also finding that we have clients who want to establish become multiple MGAs. That is becoming a thing, definitely. It seems to be primarily driven by desire to enter new territories. One of the core features we offer is multi-territorial MGA properties. We can help clients navigate new territories and stay compliant as they grow.
IE; Any particular geographical areas that are hotspots for this right now? –
DM; It’s all over really, but we are seeing plenty of interest from clients who are existing MGAs and want to launch in the USA. Plus, that is also a trend the other way, so US companies wishing to become MGAs across Europe too. For us, we see significant opportunities for multi-territorial propositions.
We are seeing companies wanting multi-aligned products, all tied to their existing customer base. They might have a core proposition and want peripheral products. Lots of thought going into growth strategies right now. It’s exciting and challenging. For us 15 new MGAs last year, 66% overall business growth on the previous year.
We are also exploring a pipeline of 15 further MGAs for this year too. We are highly selective and are declining about 62% of what we see. It demonstrates to me that the quality of ideas around growth are much better now. Much of that is home based working freeing up time.
IE; One company told IE last year that hybrid working had boosted productivity by about 25%. It really makes a difference when planning a new project doesn’t it?
DM; Sometimes an office environment can offer a few distractions in terms of time usage. But hybrid working definitely helps us achieve more, plus enjoy more long weekends too. Pro MGA Global Solutions is definitely managing our time better and getting an improved work-life balance too.
IE; How is tech changing things like translating languages, like say T&Cs for regulators in different markets?
DM; It can be challenging translating some legal terms for different markets, yes. But the way to do that is by having good quality expertise on the ground. If you’re coming into Europe you need multiple versions of whatever your core language terms are and it is not easy. But it’s do-able and all about having the experts. One strength we have is offering that local multi-compliant approach.
IE; If you look at the UK, you have Gaelic, Welsh and other languages to consider adding to T&Cs. Then in a market like say Spain, you have Catalan, local Valencian or Galician dialects. All of those are really separate languages and offer a legal challenge if you get things wrong.
DM; You can’t get away from having a network of resources to resolve those problems. Pro MGA Global Solutions sees ourselves as a partnership, so we enjoy helping clients with those on-the-ground challenges.
IE; There’s so much investment in green tech now, are you seeing MGAs who want to specialise in that niche in particular?
DM: Absolutely. We are seeing more ESG and environmental propositions. There is a massive appetite for it. It tends to be driven by local government agencies, who are embracing this new technology and of course that creates demand for new insurance products. It’s about alignment and very much an uptick right now.
Products need to be thought through carefully and if insurance brands are creating lines for governments then they need to work closely on product development with the public sector.
IE; Any other growth areas you’ve spotted?
DM; Embedded insurance is being refined and developed this year. The concept of placement facilities is driving much of it. Lots of it is being automated too. In a wider sense, risk pricing and leads are being automated more too, the whole placing process is changing and offering more power to the broker in terms of choice.
The economic situation means that there’s more emphasis on value now, everyone is looking to create things that are affordable, but still deliver what is needed. There is lots of work going on in that area, people are adapting to what is going on in the world and trying to build products that businesses and individuals can buy – that’s what it’s all about.
BIBA this year is an example of how entrepreneurial the industry is, the positivity, the buzz is bigger than ever this year. It’s exciting being here and having conversations, hearing about new ideas.
IE; Great insights Danny, thank you.
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