MGA sector growth momentum and increasing demand for access to program business from capital markets investors will support the wave of fronting carriers that have entered the space in the last few years, according to panelists at the Program Manager conference.
Capital markets investors looking to access the program space are not interested in fronting carriers retaining a portion of the risk, according to Ledger Investing CEO Samir Shah.
The MGA sector outperformed the broader P&C market by 4 loss ratio points over a 10 year period, excluding agricultural business, Aon senior managing director Cory Schilling told attendees at the inaugural Program Manager conference earlier today.
Speakers on a panel at the Program Manager Conference 2022 highlighted the rapid changes the program sector is undergoing, with its sophisticated technology adoption, the rise of hybrid fronting companies, and a greater interest from traditional reinsurers all suggesting its growth will continue.
Core Specialty’s management have told this publication that its recently consolidated fronting business wrote $441mn of premium last year as it differentiated itself not only for its large amount of workers’ compensation but also its openness to increasing its participation.
The $60bn-plus US MGA market will maintain its current growth trajectory for the foreseeable future with the sector buoyed by underwriting talent being drawn to the prospect of better remuneration and broader industry pricing that remains on the rise, Aon’s Doug Bennett has told Program Manager.