International

03-10-2024

New GILC report on global MGA markets

Global Insurance Law Connect (GILC) has launched its report, Innovation abounds: opportunities for growth in the global MGA market, providing insights from 18 countries into the proliferation of MGAs in the global insurance market and the distinct regulatory environments in each jurisdiction.

The report found that the use of MGAs varies significantly around the world. In certain markets, MGAs are used to fill capacity gaps and introduce niche underwriting ideas, while in others they can help larger insurers remain innovative or showcase and support outsourcing models for claims and distribution.

MGAs expected to take-off in less developed markets
The report found that in multiple different ways, MGAs are healthy for the insurance market, and this is reflected in their ongoing growth and expanding geographical spread.

The US remains the largest market for MGAs, while the UK is also experiencing significant growth. The picture across Europe is more variable, with most European markets hosting some type of MGA ecosystem. Many markets are still in the early stages of development, providing opportunities for a future growth surge.

In less-developed markets, MGAs are also being recognised as a useful innovation tool and in some places, growth could be explosive. The wider Asia-Pacific market is expected to be a big growth area for MGAs including in China where MGAs remain in their infancy but are gaining ground in key financial centres. Another secondary market poised for growth is Latin America. While the maturity of the MGA sector varies greatly between markets, Brazil is leading the way with an increased relevance of MGAs in that country.

Risk innovation
Although innovation is widespread, the growth curve for MGAs shows two major themes. MGAs are used in almost every country to support expansion into niche or emerging lines and to bring innovative and cost-effective solutions to the consumer market.

Almost all countries see a growing role for MGAs in emerging and developing markets including in the technology space, and in providing cover for and assessing risks associated with climate change.  They also play a role in managing claims in the aftermath of worsening natural catastrophes.

Filling niche capacity gaps
Many consider niche and emerging lines as a natural fit for MGAs to provide insurance and reinsurance capacity.  This is due to the specialist underwriting knowledge available within underwriting agencies, allowing them to respond to market demand more quickly than traditional carriers.

BUREN has contributed the China insights to the report.

To download the report, please click here

Key contacts

Jan Holthuis

Partner | Lawyer
Send me an e-mail
+86 (0)21 61730388

Key contacts

Jan Holthuis

Partner | Lawyer
Send me an e-mail
+86 (0)21 61730388

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