On the 3rd July, the UK MGA sector will come together at the MGAA Annual Conference to discuss ‘Navigating a Bright Future.’ The event theme is fitting. MGAs are the fastest-growing insurance sector in the UK, and the MGAA now represents more than 430 members.
The sector has grown through an unrivalled knack for innovation. By responding rapidly to the evolving risk landscape, UK MGA offerings now span every product line, from more traditional policies through to innovative cover for drones, cyber risks, electric vehicles, and beyond. UK MGAs are also experts at utilising the latest technology to deliver the best value and experience to customers.
But the insurance landscape doesn’t stay still for long, and the current economic and geopolitical uncertainty presents new challenges for UK MGAs. A softening market and increased competition also mean they must work harder to differentiate themselves and remain profitable.
Ahead of the MGAA conference, here are a few of our thoughts on the topics that will dominate the conference and how UK MGAs can position themselves for growth and a bright future, in 2025 and beyond:
Strengthen and diversify capacity relationships
A softer insurance market means capacity is more readily available, and UK MGAs can take advantage of this shift to strengthen and diversify their capacity relationships. Strong partnerships can be a real differentiator when selling through brokers, with a recent study finding that the financial strength of an MGA’s capacity partner plays a major role in broker decision-making and, for 98% of brokers, capacity from A-rated or highly rated provider increases the attractiveness of a partnership.
Yet, despite the softer market, capacity providers will have an eye on current global uncertainty, meaning it is vital for MGAs to proactively demonstrate their operational efficiency and performance. Investing in the right technology platform will be non-negotiable in the coming months, to ensure they can generate comprehensive data and regular reporting on underwriting performance, claims, and market trends.
Explore new niches
UK MGAs are known as experts in specialist and hard-to-place risks, and as competition intensifies, placing niche risks is where they will see real growth. A study by Corin Underwriting found that 80% of brokers expressed a preference for MGAs to concentrate on bespoke products tailored to specialist industries over broader market offerings. Expanding within niche areas will also help MGAs retain underwriting discipline, pricing, and customer experience, rather than spreading themselves too thinly. Insly’s client base includes some key examples of how to build and manage a niche portfolio successfully, including London Marine, specialists in yacht insurance and Renovation Underwriting, which provides cover for property renovators.
Invest in digital innovation
Technology has always been central to how UK MGAs differentiate themselves, and as digital innovation accelerates, adopting the latest tools and platforms will become even more critical for business growth and profitability. While many UK businesses are ahead of the game in their digital journey, the AI revolution means that they must reevaluate what is possible and the tools that will drive a competitive advantage in the current market.
AI and automation are transforming underwriting efficiency, the speed of product launches, claims processes, and the sales pipeline, enabling UK MGAs to respond faster and handle more business, without investing in additional resources. For example, Insly’s new AI-powered tool, FormFlow, is transforming the broker submission process, helping MGAs triple the proportion of quotes they process.
As pricing pressure increases, technology will also become increasingly important in delivering the data and insights to aid quality risk selection, accurate pricing, and innovative underwriting strategies. MGAs with joined-up systems and processes will be at a distinct advantage in accessing high-quality data and building a profitable book of business.
Innovate distribution
Finally, while broker distribution remains at the heart of the MGA business model, growth will also increasingly come from exploring new distribution channels. Embedded insurance is predicted to be the fastest-growing personal lines channel in the next few years, and commercial lines are likely to follow suit. For MGAs, embedding insurance directly at the point of sale enables them to reach new customer segments, plus setting these up is now relatively straightforward via APIs and agile insurance software.
As the UK insurance landscape continues to evolve, MGAs are uniquely positioned to capitalise on new market realities. Those that deepen capacity relationships, specialist expertise, and reimagine the potential of technology will not only weather the soft market cycle but also emerge as growth leaders.
