Q&A
Grant Kimball President/owner
What’s next for the MGA market in Canada?
ANGUS-MILLER LTD.
Years in the industry 38 Fast fact Angus-Miller Ltd. specializes in several different sectors, including commercial auto, boiler & machinery and hole-in-one
What is your company doing to set itself apart from other MGAs? Firstly, we stress service above all else, and our service starts with our staff. As an MGA, it is important to our broker partners that they can reach us when they need us, they can speak to an underwriter who understands the area and has the time to discuss rate and terms of the particular risk. Our second focus currently is on utilizing technology to help us better understand what our brokers need for market and also what they are successfully placing with us and what they aren’t. To this end, we have hired a data analyst to take our data and put it into a format that will give us insight into what risks we are having a better closing ratio on, what brokerages are more successful placing risks with us, and what areas are most successful. On top of that, we can also analyze our internal process to see which underwriters are having success in what sectors.
What have been the major changes in the MGA market in 2016, and what changes do you anticipate in 2017? The major change we have seen in 2016 was an increase in the importance of MGAs to the Canadian insurance market. As domestic insurers reduce their appetite for entire classes of business right across the country, it allows MGAs to look at risks on an individual basis and find a solution for the broker’s needs and ultimately for
Brokers flock to Insurr, ‘the Google of insurance’
A month in, the new Google-like database for brokers searching for specialist insurance lines in Canada has been making waves in the industry. Insurr was launched at the end of October as a modern alternative to print directories, and brokers have been seeing the benefits of its intuitive, instant search facilities. “Prior to Insurr, we were forced to visit each company’s website,” said Roxanne McKenzie, president of JW Davis Insurance Brokers. “[This] platform allows me to see which other MGAs would be able to facilitate my clients’ needs.”
the insured. Most MGAs have long-tenured underwriters in their commercial departments who will assess a risk on its own merits, and in most cases, find a suitable carrier for the risk, as many MGAs represent several carriers, both domestic and international. For 2017, I see more market constriction by the domestic carriers, which will increase the importance of MGAs even more.
Do you believe there is an oversaturation of MGAs on the market currently? There are considerably more MGAs in the Canadian market than there were, say, 10 or 20 years ago. With so much excess capital making its way into the market, it is increasing the pressure on everyone to attain market share, and working with MGAs is a fairly effective way for companies to put their investment capital to work. MGAs are a developing market in Canada, so it is too premature to say if there is an oversaturation of them or just over-capitalization of the market as a whole. I do firmly believe competition is good for everyone.
What are the major challenges facing MGAs currently, and how are you addressing them? Finding good talent! We are currently in a growth period, so we are looking for a couple of underwriters to add to our team, and it is difficult to find qualified people. We are at the point where it is going to be a combination of finding some experienced underwriters, but also hiring some keen young people who we can develop.
Canadian MGA hits milestone with Lloyd’s
New Brunswick-based Anderson McTague has been recognized as Canada’s longest-standing MGA coverholder for Lloyd’s of London after reaching 50 years. “The insurance industry is like many others in that you have to plan and begin executing that plan now to lay the groundwork for another 50 years,” said company president Chuck McTague, adding that the achievement is a result of the collective efforts of the team. In the past three years, the MGA has posted double-digit growth targets and has almost doubled its workforce.
European firm opens business in Canada
European insurer ARAG Group announced that it has expanded into Canada through its new unit, ARAG Services Corporation; the new Torontobased company is an approved Lloyd’s coverholder. The company will act as an intermediary, developing legal insurance products and managing underwriting, sales and marketing activities in the Canadian market, operating at first in Ontario, BC and Alberta. It will primarily focus on group policies for private customers and small to mid-sized companies.
www.insurancebusiness.ca
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