Despite the pandemic's challenges and associated uncertainties, the MGA channel continued to thrive in 2020
June 24, 2021
HARTFORD, CT – June 24, 2021 –The Managing General Agent ("MGA") and program market continued its upward trajectory in 2020, with premium growth outpacing the overall property-casualty market.
"The Covid-19-related economic, health, and employment challenges that emerged in 2020 were tough on those MGAs and program administrators that focused on the most affected sectors of the economy," said Alyssa Gittleman, a Vice President in Insurance Research at Conning. "It appears, however, that the concerns relating to cash flow, new business production, and lost programs were somewhat mitigated by a hard market that had a favorable impact on almost every line of business."
The Conning study, "Managing General Agents: Rising to the Challenge" presents MGA marketplace dynamics, trends, players and outlook. It includes analysis of the growing fronting market, and findings from Conning's 2021 proprietary survey of MGA executives. Survey respondents shared insights into how the pandemic affected their business, the overall market, and whether they believe there will be long-term changes to their business.
"The fronting market continued its double-digit growth pace in 2020, with new fronting insurers launched even as the pandemic was taking hold," said Steve Webersen, Head of Insurance Research at Conning. "We expect new formations and M&A will be an interesting feature to track in this market for years to come."
"Managing General Agents: Rising to the Challenge" is available for purchase from Conning by calling (888) 707-1177 or by clicking here.
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Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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