A cautionary tale...Much has been written over the last few years about the maturation, sophistication and professionalisation of the MGA, MGU and program administrator space.
2023: MGA outlook positive but not without its challengesEarlier this month AM Best assigned a positive outlook to the MGA sector – or the delegated underwriting authority enterprise sector as the firm characterizes it.
Time for a reality check…This publication was launched a couple of years ago because we, as publishers, saw an opportunity to bring a valuable news service to a booming sector.
The capacity challenge…The “capacity is king” trope is widely used in the MGA and programs space, and for good reason.
Get with the program…If the challenge of the inflationary impact on property reinsurance renewals was a dominant theme of the Monte Carlo Rendez-Vous last week, then the buoyant state of the $100bn+ programs and MGA sector may be seen by some as a welcome diversion for reinsurers retrenching from cat that are seeking other growth opportunities.
The next frontier is here…For almost as long as the ILS market has been around the question has been when and whether an asset class hitherto dominated by cat risk could be broadened to encompass longer-tail exposures and provide a more diversified uncorrelated portfolio to investors.
Sunny outlook despite gathering storm cloudsWith mounting recessionary fears amid surging inflation and rising interest rates; geopolitical uncertainty from the Russia-Ukraine conflict and government instability elsewhere; and a growing frequency of extreme weather events, storm clouds are gathering over the global outlook.
Runway for growthEarly this year when we were weighing up hosting events for Program Manager amid continued uncertainty around Covid-19 we were told (to misquote Field of Dreams): build it and they will come.
The great migrationPlenty has been written in recent years about the threat to the wider P&C insurance industry posed by a finite talent pool and a succession void as the ageing demographics of its senior ranks outpace the flow of human capital in the tiers below.
Capacity crunchIt was at the Wholesale & Specialty Insurance Association (WSIA)’s Annual Marketplace 2021 in San Diego back in November that the extent of carrier retrenchment from supporting cat-focused property MGAs became clear.
New frontiersIn a short month that has already seen the publication of our relaunch issue of Program Manager, we might have been forgiven if our official February issue was a little thin on the ground.
The structural shiftDespite AM Best’s pitch that its now officially launched Best’s PA will bring transparency to the delegated underwriting authority sector, the word is not one readily associated with the programs space that MGAs, MGUs and program administrators occupy.
Letter from Target Markets: back to deal-makingTwo years is a long time in the program market. And last week’s long-anticipated return of the Target Markets Program Administrators Association Summit brought a record attendance as well over 900 delegates descended on Scottsdale, Arizona thirsty for a return to large-scale face-to-face interaction.
Driving value in the $100mn MGA/programs marketAnother month has passed in the programs sector and there appears to be no let-up in activity as buoyant conditions continue to drive new program partnerships, growth investments and M&A.
Growth, growth and more growthFar from a summer lull, the last few weeks have seen a surge in activity spanning fundraising, M&A, program launches and platform building in the US program sector.
The US program sector – a growth storyFor those of you new to Program Manager, or to our parent title The Insurer, we launched a new platform in the midst of the pandemic restrictions called The Insurer TV.
Platforms for growthNew turnkey MGA platforms are emerging in the program sector looking to provide a home for underwriting teams and seek growth opportunities in a burgeoning marketplace…
Performance assessments: catalyst for further change?There are less than two weeks before the 3 May deadline for feedback on the methodology that will drive Best’s Performance Assessment for MGAs, MGUs, program administrators and other delegated underwriting authority enterprises (DUAEs).
Under the ratings agency spotlightNews this week that AM Best is introducing performance assessments – or Best’s PA – for MGAs, MGUs, program administrators and other so-called delegated underwriting authority enterprises (DUAEs) is likely to meet with a mixed response in the programs sector.
Fertile ground in the program sector draws fresh interestOpportunities to access specialty insurance business and potential fee income continue to attract the attention of capacity providers to the US program sector.