2018: Property-Casualty Managing General Agents - The Golden Age Endures


Price : $1,750.00



Conning’s annual Strategic Study of the program market incorporates findings from our analysis of Conning’s proprietary MGA data set as well as our market survey of the MGA/MGU/PA environment to present findings on a number of topics:



  • Program market size and growth statistics

  • Major insurers with their historical MGA premium broken out by affiliated and nonaffiliated MGAs

  • Individual MGAs with premium levels and their insurer relationships

  • MGA executives’ perspective on the market from survey results and in-depth conversations

  • M&A activity in the program sector, major buyers, new formations, and acquisition trends

  • Outlook for the program sector, including new product development, new entrants and exiting players, and challenges for the industry


 


 


1. Introduction

2. MGA Market—Executive Summary (Year in Review)

3. Overall 2017 MGA Market Size & Growth Dynamics 



  • Program Business Is a Sizable Market

  • Mix of Premium by Affiliation Type

  • Mix of Premium by Line of Business

  • MGA Market Premium Growth Rate Increases Again

  • MGA Count Growth

  • Growth Is Expected to Continue


4. Insurers’ Involvement in the MGA Market 



  • Large Insurer Interest

  • Concentration of MGA Premium

  • Insurers Using Nonaffiliated MGAs

  • Insurers Using Affiliated MGAs

  • Market Movement


5. MGA Premium Trends 



  • Nonaffiliated MGAs

  • Affiliated MGAs

  • Crop

  • Authorities Granted to MGAs from Insurers


6. Conning’s MGA and Program Market Survey 



  • Detailed Survey Findings


7. M&A Activity in the MGA Market 



  • Distribution M&A Environment

  • New Formations

  • Valuation Multiples—Quite Rich


8. Trends and Outlook for the MGA/Program Market 



  • Current Environment

  • InsurTech MGAs

  • Near-Term Property-Casualty Outlook

  • Needs/Challenges to Overcome for the MGA/Program Sector

  • MGA Market Outlook

  • Final Thoughts


Appendix 


A. Methodology and Definition of MGA Premium Analysis


B. Overview of the MGA Market


C. Conning MGA Dataset


Introduction

This is Conning’s fifth study on the program business market, including representation from MGAs (managing general agents), MGUs (managing general underwriters), and PAs (program administrators). The report includes full-year 2017 results, further expanding the depth of information within Conning’s proprietary database of statutory MGA premium from the previous five years.

Specialty risks have become an important sector of the property-casualty insurance landscape. Monitoring trends within program business premium growth, underwriting authority, and insurer relationships helps provide insights into the dynamics of a growing sector within property-casualty. Conning sees this study as a “must read” for those who operate programs providing underwriting capacity and for investors seeking to gain understanding of the nuances of this market for making informed decisions regarding acquisitions.

Conning combines the strength of an ever-growing database of MGAs and their insurer partners along with an online survey of MGA/MGU/PA principals, further supplemented by in-depth interviews with both insurers and MGA owners. The survey and interviews provide additional perspective and color surrounding market trends. In addition, Conning applies its proprietary M&A database to the program sector for deeper insight into acquisition trends.

This annual strategic study on the program market provides a broad contextual view of the MGA/MGU/PA environment and presents analysis across a variety of topics:



  • program markets’ premium size and growth statistics

  • major insurers and their historical premium broken out by affiliated and nonaffiliated MGAs

  • individual MGA premium levels and their insurer relationships

  • MGA executive perspective from survey results and in-depth conversations

  • M&A activity in the program sector, major buyers, new formations, and acquisition trends

  • outlook for the program sector, including new product development, new entrants and exiting players, and challenges for the industry


Conning continues to grow its database of insurer/MGA relationships, premium history, and lines of business. NAIC (National Association of Insurance Commissioners) reporting regulations limit the full program market reporting by requiring individual MGA premium reporting only for those constituting 5% of surplus or more. Thus, our analysis of premium should be considered a floor or lower-end estimate of MGA-related premium. However, this estimate represents the most consistent and verifiable baseline for program premium levels in this difficult-to-quantify market.

The program market is a diverse mixture of property-casualty lines of business, industry sectors, and geographies. Often at the forefront of product development, the underwriting expertise and entrepreneurial spirit of MGA owners, underwriters, and administrators continue to deliver market-beating growth and innovation to an insurance market ripe for disruption. The MGA has become a relied-upon distribution channel for insurers of all types: large nationals, fronting insurers, international markets, and smaller specialty insurers.