During a recent IBTalk podcast with Insurance Business UK, CEO of the Managing General Agents’ Association (MGAA), Mike Keating, shared his insights into the challenges and opportunities facing MGAs at this time. Among the topics discussed, the leader touched on the vulnerability of MGAs to the talent crunch impacting so much of the wider insurance market.
“[MGAs] are not immune to the recruitment challenge and they’re not immune to attrition from that perspective,” he said. “What I would say, however, is that there has been a slight drain from the traditional market into the MGA sector. And that’s really driven by the dynamics of MGAs insofar as that they are very innovative, very agile and they recognise underwriting/distribution/product knowledge expertise.
“People I speak to who have moved from very successful careers in the traditional market into MGAs, tend to say it’s so refreshing [to be] in an environment where cause and effect really is a hygiene factor. Where they can make a decision at nine o’clock in the morning which will be implemented at ten past nine.”
From that perspective, Keating said, while the MGA sector is not invulnerable to the broader challenges around insurance recruitment and retention, MGAs have the opportunity to set themselves apart when it comes to attracting top talent. MGAs should lean in to what attracts people to the business model, which comes down to giving people the freedom, landscape and opportunity to spread their wings and execute their skills.
“Be those skills in underwriting, product development or operational efficiency… you can really flourish in MGA,” he said. “I'm not suggesting that this is not available in the insurance market. But having had experience in the company market myself, I would say it's not as wide-ranging as what you get when you're operating in an MGA.”
What are your thoughts on the MGA market of 2023? Please feel free to share your comments below.
