The British Insurance Brokers’ Association (BIBA) has launched a new guide to help members when using Managing General Agents (MGAs)
An MGA’s primary function is the provision of underwriting services via underwriting permissions from insurers. They may undertake many tasks that insurers normally handle and rely on the insurer largely for just risk capacity and the capital that supports it. Many will also appoint insurance brokers under their own Terms of Business Agreement.
They have become increasingly important to brokers, becoming adept at designing solutions to emerging risks, especially where actuarial data might be limited, providing capacity for more specialised risks, locations or those seen as high hazard. where the traditional company market is more limited. This increase in availability is the reason why, in response to member demand, BIBA published the guidance.
BIBA’s Head of General Insurance, Alastair Blundell said: “Our members tell us than MGAs are becoming increasingly useful to them, but they were also asking questions about how this might impact their regulatory compliance in several areas. Our guide gives them pause for thought on areas such as Terms of Business Agreements, broker responsibilities, termination of delegated authority and claims.”
Graeme Trudgill BIBA CEO added: “We work closely with our colleagues at the MGAA (Managing General Agents Association) and understand the benefits that MGAs can bring to the UK insurance market. We have always championed access to insurance and for our member broker having additional capacity especially in more challenging markets is invaluable. This guidance will give confidence to any member new to using MGAs.
The guide is a BIBA member only benefit and is available online on the BIBA website.
Notes to editors
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Pam Quinn, Head of Communications
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quinnp@biba.org.uk
Leighann Forsyth, Deputy Head of Communications
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forsythl@biba.org.uk
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3 – About the British Insurance Brokers’ Association
The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.
BIBA membership includes around 1800 regulated firms, employing more than 120,000 people.
General insurance brokers contribute 1% of GDP to the UK economy; they arrange 77% of all general insurance with a premium totalling £105.5bn and 94% of all commercial insurance business.
BIBA is the voice of the sector advising members, Government, regulators, consumer bodies and other stakeholders on key insurance issues.
The BIBA Conference is Europe’s largest insurance exhibition and hosts over 9000 insurance professionals and 230 exhibitors annually.
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