MGAs ‘are the future of insurance’

That is according to Danny Maleary, chief executive officer of Pro MGA Global Solutions, who said he believes the agility and efficiency of the structure means it has a permanent place in the industry.

Pro MGA Global Solutions is a service provider to the sector, offering “MGA-in-a-box” packages which enable an MGA’s owners to focus on underwriting and capital-raising.

“The MGA will be the future of insurance if it is structured correctly, embraces the right operating model, uses technology, and offers good service,” he told Monte Carlo Today.

“That nimble approach is ultimately what the customer is looking for, whether that customer is an individual or the corporate. That is where the MGA excites me.”

“The Popularity Of The Structure Lies In Its Agility.”

There is no shortage of new entrants into the market, said Maleary, who began the business in 2016.

“We see 10 to 15 proposals a month which is an increase over the last couple of years from the five to 10 we would normally see,” he said. Of those, Pro MGA typically brings on about 15 new clients a year.

It currently works with 46 MGAs writing $600 million of gross written premium over 30 classes of business.
Maleary said the popularity of the structure lies in its agility and its ability to adopt and use cutting-edge technology.

“We are seeing a significant shift with insurers, reinsurers and alternative risk capital looking to support MGAs,” he said. “MGAs are very much at the forefront of the chief underwriting officer’s mind in terms of how they grow.

“Whether it is MGAs they own, or MGAs they support as third parties, there is a suite of platforms where they can offer their capital out, and that trend is going to continue to move upwards.”

Maleary added that MGAs were attractive to entrepreneurially-minded underwriters who wanted more autonomy than they might get in a large company, and that investors of all stripes were interested in supporting MGAs.