Q&A
Harnessing IT for MGA success Jason Anthony Founder and CEO MGAM Limited
Fast fact Jason has 27 years’ experience in the Lloyd’s and London market. He is the former managing director of OIM Underwriting, the MGA owned by Arthur J Gallagher. In 2016, Jason launched MGAM Limited, an innovative MGA focusing on the London and provincial markets.
What is MGAM Limited? We act as custodians of carrier capacity and provide insurers with access to markets by partnering with unique and/or niche distribution channels via a traditional coverholder binding authority model. We provide a full underwriting management service and manage distribution costs via sophisticated IT systems, which provide an improved service to coverholders and deliver better underwriting results to insurers.
How do you set yourself apart from the competition? We have invested significant capital, effort and time to establish a particularly robust infrastructure that has been described by one insurer as the best coverholder management system they have ever seen. Our processes are scalable and handle the entire scope of business, from onboarding of coverholders to providing detailed and extremely high-quality underwriting management data. Our system provides the additional benefit, through rigorous screening, of enabling us to select only the highest quality coverholder partners. MGAM has developed a bordereau management system that validates and standardises written and claims bordereau data, including automatic upload to the ELD of ERN data, to ensure quality MI. These systems not only allow us to service traditional coverholder/binder business, but also offer services to insurers who require management of their data and back-office services. We have developed an online quote and bind
Horizon switches from insurer to MGA
Gibraltar-based Horizon Insurance has ceased writing new business and changed its status from insurer to MGA. Horizon, which was formerly known as Octagon, said its directors decided to stop renewing or accepting new motor policies in 2017, after failing to secure additional funding that would enable the company to meet its business plans for this year and beyond. All policies issued up to 31 December 2016 remain in force and all claims should still be submitted to the claims handler, Catalyst Consulting Solutions.
product that we can white label for our coverholders, saving them the typically six-figure sum required to purchase similar systems themselves. This same product provides MGAM with unique distribution to markets that previously we were unable to access insurance product directly. We also geo-map our liability claims data to compare with that of the publicly available industry health and safety statistics in order to bring an additional layer of underwriting scrutiny. This data enables more specific targeting of resources that, in turn, delivers higher profitability.
What are the challenges and opportunities in the MGA sector this year? The key opportunity for the MGA market is to add value to carriers and clients by disrupting the market and finding untapped distribution channels. One of the challenges will be to ensure infrastructure is in place for the sector to grow sustainably, at the same time discovering new distribution channels in an extremely heavily regulated UK market. We are also seeing considerable interest from insurers to improve their back-office process. This presents a significant opportunity for MGAM given our focus on the delivery of first-class IT into a market that lags other industries in terms of tech capabilities. I believe we are on the brink of tectonic change in the industry, and I predict that in a short time frame our working environment will be unrecognisable when compared to how we operate today.
IIGL to help Gable brokers
Incorporated Insurance Group Limited, the MGA specialising in construction insurance, has offered to help brokers of Gable clients following the news that the insurer has gone into administration. IIGL will provide brokers with various deals, including additional discounts for Gable business. For brokers with individual cases, IIGL has negotiated additional discounts of up to 25% to help ease the cost to the client. For brokers looking to move several cases, IIGL will provide clients with free cover up to the policy renewal date.
Limehouse Agencies launched
Lloyd’s broker RFIB has launched Limehouse Agencies, an MGA that will capitalise on the latest innovations in technology to provide greater services and products. Appointed as the firm’s non-executive chairman is Jack Gressier, who noted that disruptive technology has created a new paradigm in risk transfer. He said Limehouse Agencies has been set up to be at the forefront of this development. Gressier will soon announce the appointment of a “world-class” CEO to lead Limehouse.
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