The British Insurance Brokers’ Association (BIBA) has introduced a new guide to help its members navigate the use of managing general agents (MGAs).
MGAs, which operate with underwriting permissions from insurers, provide a range of underwriting services and often assume tasks traditionally handled by insurers. They rely on insurers for risk capacity and capital and many also appoint insurance brokers under their own terms of business agreements.
In recent years, MGAs have become increasingly important in the market, particularly for addressing emerging risks where actuarial data may be limited or for offering coverage in specialised and high-risk areas where traditional insurers may be less willing to provide capacity. This growing role of MGAs in the insurance market prompted BIBA to publish new guidance in response to member demand, the association said.
BIBA’s head of general insurance, Alastair Blundell, said that while members find MGAs increasingly useful, they have raised concerns about its potential impact on 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 authorities and claims,” he said.
Meanwhile, BIBA CEO Graeme Trudgill said the association is closely working with the Managing General Agents Association (MGAA), adding that MGAs provide essential additional capacity, particularly in challenging markets.
“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,” Trudgill added.
BIBA represents more than 2,000 insurance brokers across the UK and provides various services to its members, including regulatory support, training and networking opportunities. The association is focused on ensuring that brokers can meet the changing needs of their clients while remaining compliant with industry regulations.
In line with this endeavour, BIBA introduced its 2025 manifesto last January, outlining how brokers can help drive growth through risk management, investment and access to insurance. It laid out its six-point plan, which includes streamlining reporting requirements, reforming product value and fair value assessment requirements, and accelerating authorisations.
