Surveys revealed that Managing General Agents (MGAs) are highly esteemed for their expertise in non-standard insurance coverages, as perged by Prestige Underwriting Broker.
In a recent survey conducted by Prestige Underwriting, key trends and challenges in the non-standard insurance market have been identified. The survey, which polled a significant number of insurance brokers, sheds light on the market's current state and future direction.
One of the most significant findings is the identification of unoccupied homes as a key growth sector within the non-standard insurance segment. A staggering 75% of brokers surveyed indicated a strong surge in demand for non-standard cover in this area.
Brokers also expressed a robust appetite for tailored, specialist solutions to respond to the growing complexities of client needs. However, the survey did not indicate a consistent robust appetite across all sectors, with the survey only mentioning unoccupied homes, key home, and motor segments as having significant demand for non-standard cover.
The survey also underlined the critical role of Managing General Agencies (MGAs) in navigating the non-standard insurance market. An impressive 90% of brokers rated MGAs like Prestige Underwriting as very or somewhat valuable partners. This finding highlights the importance of MGAs in underwriting and market access.
However, the survey also revealed ongoing challenges in the non-standard insurance market. Maintaining strong claims service and underwriting quality are critical for sustaining broker relationships and overall MGA effectiveness. The survey did not provide specific details about the waning confidence in the market's solutions for non-standard risks, but it did suggest that brokers want MGAs to be rated on their performance. A whopping 81% of brokers believe more MGAs should pursue a rigorous review of their performance, although the reasons behind this desire remain unclear.
Prestige Underwriting, with ambitious growth goals of £300m in gross written premium by 2026, is targeting this dynamic market through a combination of organic growth and mergers & acquisitions. The broader market data from related reviews show rising claims costs and challenging underwriting profitability in related motor insurance markets, which likely impact non-standard segments indirectly by influencing pricing and risk appetite.
In summary, Prestige Underwriting's broker surveys highlight unoccupied homes as a key growth sector, confirm the high value brokers place on MGAs, and emphasize ongoing underwriting and claims service challenges as critical for success in the evolving non-standard insurance market.
Meanwhile, a separate survey by Corin Underwriting has revealed that 81% of UK insurance brokers support MGAs undergoing A.M. Best performance assessments. However, the survey did not provide any information about the reasons behind the brokers' desire for MGAs to be rated on their performance.
- The innovation of tailored, specialist solutions is a growing demand among brokers, particularly in the non-standard insurance market, as they aim to respond to the increasing complexities of client needs.
- The finance industry is closely monitoring the results of Managing General Agencies' (like Prestige Underwriting) performance, with 81% of brokers expressing the belief that more MGAs should undergo rigorous performance reviews.
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