There is a definite value to MGAs, and their value will only increase as insurers become more conservative in their underwriting, says one Ontario broker.
“I think that MGAs are becoming much more important,” says one Sudbury broker who took part in the Rating MGAs survey, “as insurers are just looking for what fits in their box.”
Telling Insurance Business in a follow-up telephone interview that MGAs will play an ever larger role in broker underwriting, she did point out that there is a need for some kind of regulation of Managing general agents.
“Brokers are required to have so many hours of training and insurers are required to have a license,” she said in a follow-up telephone interview, telling
Insurance Business that although she has never been burned by an MGA, she has heard some stories. “MGAs are currently operating in a sort of grey area. As brokers turn to MGAs more and more – sometimes on a daily basis – there will be a need for some sort of regulation.”
But despite the potential danger of a few bad apples, the strengths of an MGA are greatly appreciated by brokers, like this one broker-owner from North Vancouver who participated in the survey.
“Their best asset is underwriting,” he wrote, “something lacking with insurers.”
Another B.C. broker, Holly Smith of Port Moody Insurance, praised MGAs on their flexibility that extends beyond that of computer technology.
“The one thing that I like is a company that will take anyone’s application or a typed submission!” says Smith.
How do you rate MGAs? Time is running out, so tell us now by taking part in the Insurance Business ‘Rating MGAs’ survey, and have a chance to win an iPad Mini.
