Managing General Agents: Superior Growth in Specialty Markets
Conning—MGA & Program Market Growth Outpaces Rest of Commercial Lines
--MGA market grows to 12 percent of commercial lines premium
(Hartford, CT) June 17, 2015—Insurers are increasing their commitment to the Managing General Agent distribution channel, driving high levels of growth in the MGA market, according to a new study and survey findings by Conning®.
“Our analysis of insurer filings and Conning’s proprietary survey of the MGA market confirmed that MGA market premium growth rate far exceeded that of the commercial lines sector for both the past two years,” said Bill Broomall, assistant vice president, Insurance Research at Conning. “In fact, the MGA market posted higher growth rates than the rest of the commercial lines in 2014, despite rate softening appearing in several lines. While the MGA market is sensitive to insurance rate changes, there are several factors that may be mitigating rate-induced weakening of premium growth, including a continued shift by insurers toward specialization and their demand for alternative distribution sources to access the customer.”
The Conning study, “Managing General Agents: Superior Growth in Specialty Markets” analyzes the MGA market, including Managing General Agents and the leading insurers who participate in this market. This study includes key performance metrics and trend information acquired through analysis of insurer filing data and the Conning 2015 MGA & Program Market Survey.
“MGA-sourced distribution now represents 12 percent of commercial lines premium,” said Steve Webersen, Head of Insurance Research at Conning. “There is no question that more insurers are entering and expanding their commitment to the MGA space. This greater competition for quality MGAs and programs is welcomed by distributors who can best serve this market. The demand for specialty premium and distribution increased competition among insurers and has driven M&A activity in this space, and we expect these trends to continue.”
“Managing General Agents: Superior Growth in Specialty Markets” is available for purchase from Conning by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.
Conning (www.conning.com) is a leading investment management company for the global insurance industry, with more than $94 billion in assets under management as of March 31, 2015 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, Conning Investment Products, Inc. and Goodwin Capital Advisers, Inc. Conning’s unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning is focused on the future, providing clients with innovative solutions, leveraging its global capabilities, investment experience, and proprietary research. Conning is headquartered in Hartford, Connecticut, with additional offices in New York, London, Cologne, and Hong Kong.