The majority of UK insurance brokers are calling for more managing general agents (MGAs) to undergo AM Best performance assessments, with 81% supporting the idea and 77% saying such a rating would influence their choice of partners.
The findings come from a recent survey conducted by Corin Underwriting, highlighting the growing demand for transparency and credibility within the industry.
The AM Best Performance Assessment for Delegated Underwriting Authority Enterprises (DUAEs) is an independent evaluation that gives a non-credit opinion on an MGA’s ability to provide services for its insurance partners. This assessment includes a detailed analysis of key areas such as underwriting skills, governance, financial health, organisational talent, and the strength of relationships. It provides an objective view of an MGA’s operations and stability.
Corin, a company that has been proactive in adopting the AM Best performance review process, views it as a key step in meeting the expectations of brokers and carriers. Unlike many other MGAs, Corin opted to undergo this independent evaluation, which is typically reserved for insurers.
Andy Hurrell, the founder of Corin, explained that brokers typically prefer to work with rated carriers, which raises the question of why they would accept anything less when selecting an MGA.
"At Corin, we made the decision to undergo the AM Best performance assessment to demonstrate our alignment with the high standards of insurers. This recognition not only puts us on a level playing field with carriers but also sets us apart in the MGA market,” said Hurrell.
As the demand for more rigorous performance reviews grows, could AM Best assessments become a new standard for MGAs in the industry? Share your thoughts in the comments.
