Guernsey has met with the Managing General Agents Association (MGAA) as the domicile looks to develop its MGA sector.
MGAA managing director Peter Staddon and founder David Coupe travelled to Guernsey to meet the MGA steering group formed from the Island’s industry body, the Guernsey International Insurance Association.
The MGAA representatives were impressed with the domicile’s insurance infrastructure, which is home to Guernsey’s specialist captive insurance, reinsurance, insurance-linked securities and longevity risk transfer sectors.
Staddon and Coupe highlighted Guernsey’s use of technology, insurance expertise and understanding, access to alternative capital markets, and approach to regulation as key factors providing opportunities for MGAs.
MGAs are classed as intermediaries and provide professional delegated underwriting for insurers who want to access niche markets without the cost and resources needed to underwrite these lines of business themselves.
The MGAA, formed in 2011, represents and supports three-quarters of the UK MGA market, which is made up of more than 300 MGAs and underwrites about 10 percent of the UK general insurance market’s £47 billion in premium income.
In comparison, there are currently only a handful of MGAs active in Guernsey.
Staddon said he had taken a number of positives from the meeting.
He explained: “I liked the approach we heard about and the ambition Guernsey is showing in this space.”
“Guernsey clearly gets what MGAs are all about.”
Dominic Wheatley, chief executive of Guernsey Finance, said the meeting was timely as the Island looks to develop its “already-significant international insurance offering”.
He added: “We see MGAs as a natural fit for us as we already have everything the MGAs need.”
“Entrepreneurial underwriters with capital lined up and a market position to leverage can come to Guernsey and find a high-quality insurance environment ideally placed to help develop an MGA, combined with a welcoming community and great quality of life.”