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FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 07, 2022 08:05 AM (EST)
Hardening underwriting conditions and reduced availability of underwriting capacity are posing challenges for U.K. managing general agents (MGAs), the most common form of delegated underwriting authority enterprise (DUAE) in the United Kingdom, according to a new report from AM Best.
The new Best’s Market Segment Report, “Importance of UK MGAs within the Insurance Value Chain Grows Despite Capacity Challenges”, notes that (re)insurers continue to value those MGAs that provide expertise and distribution in markets they cannot access efficiently on their own. The modernisation of the MGA marketplace to bring digital capabilities in line with other industries is viewed as beneficial, allowing risk carriers and MGAs to react to customer demands and trends in pricing and claims data in a timely manner.
Despite increased capacity challenges, those MGAs that meet the needs of risk carriers, in particular with regards to profitability and data, are likely to become of increasing importance in the insurance distribution chain, continuing the trend seen over the past decade.
Recognizing the growing importance of DUAEs within the insurance industry, AM Best last week released a new methodology, “Best’s Performance Assessment for Delegated Underwriting Authority Enterprises,” which provides a framework for differentiating among these organizations. The Best’s PA is a forward-looking, independent and objective non-credit opinion indicative of a DUAE’s relative ability to perform services on behalf of its insurance partners.
To access a complimentary copy of the UK MGA report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=317269 .
For additional information on Best’s PA for DUAEs, please click here.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.