MGAA Conference 2023 – Sharon Brown, CCO of GreenKite, highlights her key takeaways

I think that most of you will agree that this conference was a testament to how far not only the MGAA has come under the guidance of Michael Keating and his team (and the board, of course!) but how significant MGAs are today in the insurance ecosystem. Supplier attendance at the exhibition was at its highest, and it goes without saying… there were some standouts! Here are some of my key takeaways from the conference:

1. The MGA sector is experiencing a wave of innovation and growth, with start-ups entering the market and adding significant value. Despite challenges over the past year, MGAs have demonstrated their resilience in delivering products, services, and profitability to their capacity providers. Looking ahead, industry experts emphasise the importance of technological transformation and talent development as critical factors for success in an evolving market.
2. Prominent figures within the industry agree that the insurance market must move away from the costly and unsustainable hard market cycle. Instead, they advocate for establishing a more sustainable, customer-focused value market. While opinions differ on the achievability of entirely breaking the cycle, it was suggested that it can be smoothed through various means.
3. Brokers recognise MGAs’ value, including speed, responsiveness, access to decision-makers, and underwriting discipline. In challenging times, such as during the pandemic, these benefits have given MGAs a competitive edge and supported broker customers. To enhance their service and reputation, MGAs must prioritise claims management, ensuring it is handled with expertise and efficiency. Working in partnership, MGAs and brokers can find tailored solutions for customers, delivering a valuable service and fostering mutually beneficial relationships.
4. In a competitive MGA market, differentiation is key to standing out and achieving long-term success. To achieve that success, the importance of simplicity of data analysis and the use of actuarial data to answer critical questions was emphasised. MGAs must demonstrate their ability to deliver underwriting profits and add value to insurers. A clear portfolio that showcases how MGAs can achieve these goals is essential.
5. To provide better customer service, the insurance industry must actively engage and bring customers into the insurance community. Educating customers about the value and importance of quality coverage is crucial, steering away from the ‘race to the bottom’ mentality often associated with comparison sites. Transparency, consistency in service, and a robust partnership approach are vital for fostering trust and delivering value.
6. The importance of cultivating talent within MGAs to drive success was discussed at the MGAA Next Gen breakout session. The panel emphasised the need to develop structures for success, foster healthy competition, and nurture a culture of openness. Recognising the value of diverse perspectives underscored the importance of hiring diverse teams. By creating an environment that attracts and retains top MGA talent, companies can lay the foundation for sustained growth and innovation.
7. Baroness Eliza Manningham-Buller, former head of MI5 and former chair of The Wellcome Trust shared her career journey and highlighted the importance of teamwork and diversity. Drawing from her experience in intelligence, she emphasises the power of collaborative efforts in achieving remarkable feats. Her presence highlights the significance of diverse perspectives and their role in driving innovation and success within the insurance industry.

The MGA sector is poised for growth and transformation. By embracing technology, nurturing talent, collaborating with brokers, prioritising customer needs, and of course, by partnering with experts like GreenKite, MGAs can shape the future of insurance.