Guernsey industry bodies meet with MGAA to develop MGA sector
The Managing General Agent’s Association (MGAA) has been exploring opportunities to develop the managing general agents (MGAs) sector in Guernsey, following talks between managing director Peter Staddon and MGAA found David Coupe, and the Guernsey International Insurance Association (GIIA).
Guernsey has a specialist insurance sector offering captive insurance, reinsurance, insurance-linked securities and longevity risk transfer, which in turn create opportunities for managing general agents (MGAs).
Captive insurance has been seen as an attractive strategy to MGAs, enhancing its performance and building better relationships with the reinsurance market.
Speaking at panel in London earlier in the year, Michael Woodroffe, president at Kirkway International, suggested that MGAs are becoming increasingly more sophisticated, and are leveraging a variety of captive structures to build up underwriting profits.
There are currently over 300 MGAs in the UK, which underwrite around 10 percent of the UK general insurance market’s £47 billion in premium income.
Both Staddon and Coupe on their visit to Guernsey highlighted the use of technology in the island, insurance expertise and understanding, access to alternative capital markets, and the approach to regulation as key factors for MGA opportunities.
“I liked the approach we heard about and the ambition Guernsey is showing in this space,” said Staddon. “Guernsey clearly gets what MGAs are all about.”
Dominic Wheatley, chief executive of promotional agency Guernsey Finance, added: “It was timely to welcome the MGA’s Association to Guernsey as we look to develop our already-significant international insurance offering. We see MGAs as a natural fit for us as we already have everything the MGAs need.”
Wheatley continued: “Entrepreneurial underwriters with capital lined up and a market position to leverage can come to Guernsey and find a high-quality insurance environment ideally placed to help develop an MGA, combined with a welcoming community and great quality of life.”