Many reinsurers across the globe increasingly have been doing business with certain select managing general agents (MGAs), seen as market innovators, by reinsuring the fronting insurers that provide the paper for MGAs to underwrite.
Executive Summary
Many reinsurers in recent years have started to build relationships with MGAs because they want to get closer to customers and MGA innovators who focus on specialty niches and have strong underwriting results.In recent years, it is a trend that has continued from the soft market into the current hard market—as long as the interests of MGAs and their capacity providers are aligned.
“Reinsurers have been increasingly attracted to MGAs and have found an easy means to provide support through a dramatic expansion of the fronting market,” said Conning in a recent study titled “Managing General Agents—Firing on All Cylinders.”
