2016: Managing General Agents - Continued Growth, but at What Cost?



Price : $1,750.00



This annual Conning study provides a Managing General Agency market analysis, along with exploration of growth trends, market dynamics, M&A activity, and trends and outlook for the market. The report includes analysis of full-year 2015 results, and cumulative results from four years of compiled statutory data on the MGA market, from Conning’s proprietary MGA Database. The data findings are supplemented with analysis of results from Conning’s second annual proprietary MGA market survey.

1. Introduction

2. MGA Market—Year in Review

3. Key Findings—Summary
 

  • Size and Growth
  • Mix/Composition of MGA Premium
  • Product Lines and Programs
  • Authority Levels
  • Insurer Relationships
  • M&A
  • Top Challenges
  • Outlook

4. Growth in the MGA Market 

  • MGA Markets Continue to Outpace Growth of Overall Property-Casualty Market
  • Analysis of the MGA Market Using Statutory Data
  • Insurers’ Involvement in the MGA Market
  • Lines of Business
  • Growth Among MGAs
  • Summary

5. Conning’s MGA and Program Market Survey 

  • Key Findings from Our Survey
  • Detailed Survey Findings

6. M&A Activity in the MGA Market 

  • Current MGA M&A Environment
  • Summary

7. Trends and Outlook for the MGA/Program Market 

  • Current Environment—MGA Executives
  • Continued Growth
  • Summary

Appendices 

A. Overview of the MGA Market
B. Largest MGAs
C. Selected MGA and Program Market Survey Respondent Profile


Introduction

This study on the MGA (managing general agency) market is Conning’s second update from our initial report published in April 2014. This report includes full-year 2015 results, creating a database of four years’ worth of data on the MGA market from which to analyze trends. Conning conducted its most thorough examination yet, fully examining statutory records to expand the database from prior years’ analyses. In doing so, we have added more than 200 MGAs and 100 insurers to the tracking database. Our MGA database now has information on more than 600 unique MGAs and more than 200 insurers that actively use this important distribution channel.

Insurers are required by the NAIC (National Association of Insurance Commissioners) to report MGA relationships that contribute premium greater than or equal to 5% of policyholder surplus. As such, due to fluctuations in MGA premium and policyholder surplus levels, reporting can vary from year to year. This year will be a bridge year analytically, in that Conning analyzed all statutory records of insurers with MGA business over 5% of surplus. In prior studies, analysis was conducted on the top 200 insurers, representing over 80% of the market. In our analysis, we used “same set” MGA/insurer relationships from 2014 and 2015 to identify growth trends.

We also include the results of our second annual proprietary MGA market survey, which we conducted in April and May of 2016. The response rate to our survey was roughly 10%, which is consistent with last year and online survey trends. This is the second edition of the survey, and we are developing approaches to expand its reach to capture a larger percentage of the MGA market in future editions. The sample size is not large enough to make specific conclusions about the entire MGA market, but findings should be used as directional indicators. We believe there is value in the information we gained from our survey, notably reinforcing trends we observe from our analysis of the market based on statutory data.