As a virtual broking marketplace, Acrisure UK MGA (AUK MGA) looks to support brokers navigating the insurance landscape – a mission that’s become more timely than ever in the context of how rapidly the external risk environment is evolving.
Discussing the firm’s trajectory into the UK market, MD Nigel Palmer (pictured) – who joined Acrisure two years ago and has served in the insurance industry for over 40 years, largely running large SME/SME trading sites for AJG and Ardonagh – noted that when he came to the business, it had several distribution models in place and siloed products in need of modernisation.
“Around two years ago I felt I was ready for something new when the opportunity to join Acrisure arose, and I felt this aligned with the new challenge that I had been looking for,” he said. “I was keen to make use of my experience and my understanding of what smaller independent brokers need with respect to products, pricing, capacity and service while being supported by a larger platform.”
Upon joining Acrisure, the first point of order was to update its existing models into what the team believed the market needs today, and where its expertise could best be used. What this ended up looking like, he said, was a ‘club’ concept where the business could become a virtual insurer for its exclusive distribution, where the business fitted the capacity footprint.
“We re-branded as AUK MGA late last year, representing the coming together of the existing underwriting business and the team I had built,” he said. “Acrisure then went on to purchase Modus, a specialist MGA for property owners which complimented the new AUK MGA strategy.
“Today, our key products and specialisms are property owners (standard and non-standard), contractors liability (wages and turnover and per capita), and commercial combined - all areas which fit in our footprint and can be e-traded at point of sale.”
Offering his perspective on how a business can stand out in today’s insurance ecosystem, Palmer highlighted that his team has developed a strong understanding of its distribution needs and looks to deliver in those “sweet spots”. AUK MGA’s distribution spans less than 100 brokers, he said, and, as such, its service proposition remains paramount to the success and sustainability of its offering.
In addition, he said, the firm is in regular communication with its club brokers and always looking to further develop its relationships with them. That’s made possible due to its team of ex-retail brokers who speak the same language as clients and treat them as they would a retail customer.
Palmer noted that since forming as a legal entity in May 2023, the progress of AUK MGA has been marked by several major milestones. Initially, it started trading for club brokers, he said. The route to market via Acturis was still being built so the journey through 2023 was quite manual initially, but this didn’t stop the business from building traction.
“We are proud to have worked closely with top capacity providers, including AmTrust, Ergo, MS Amlin, Aviva and Convex, throughout 2023 to agree and expand our footprint and trading requirements,” he said. “We wrote £1.8 million of new GWP whilst building for 2024. Then in October 2023, we purchased and started merging Modus into the AUK model.
“In the latter half of 2023, we finally brought our AUK teams together into one office space for collaborative working and we brought in more than 40 new brokers as part of our club concept. Throughout 2023 and 2024, we have invested in working closely with Acturis and its capacity providers to build our own products via e-trade.”
That brings the business up to the end of Q1 2024, where AUK MGA, Modus and the liability teams have all achieved their budgets and growth targets. As for what’s next, he noted that the emphasis is always on exceeding targets for new business, renewal retention, loss ratios and services provided – and Q1 of this year has been no different with the team surpassing all expectations.
“This year we are focusing on bringing in new capacity, to complement that already in place, so we can write more business for our exclusive distribution,” he said. “This will include commercial combined business that cannot be easily e-traded and professional indemnity for miscellaneous trades that we can e-trade at the smaller end of the market. These products will be live for trading very shortly.”
Also high on the agenda is continuing to further build out its team with individuals who fit AUK MGA’s culture, so it can continue to service its distribution in the way it has promised its partners. He added that in 2024, the team will continue to enhance its IT platforms, solutions and central functions so that its traders are further supported.
Looking at the health of the MGA market in the UK, Palmer said he’s feeling “incredibly positive” about where AUK MGA stands today.
“We speak regularly with our distribution network to stay close to what matters to them and have subsequently generated genuine momentum,” he said. “I am just focusing on being the best we can be and am not worried about what is going on in the rest of the market.”
