Brokers and Managing General Agents (MGAs) are Reshaping their Functions in the Business Sphere

The insurance industry is undergoing a significant transformation, as evidenced by the key trends and announcements made at recent events such as BIBA 2025 and BIBA 2024.

Empowering MGAs and Brokers

At the heart of these changes is a strategic reshaping of roles for Managing General Agents (MGAs) and brokers. They are positioning themselves to take more control over underwriting capacity and risk management, moving beyond traditional intermediary functions towards greater influence in product design and risk acceptance. This shift represents a competitive advantage for these players within the insurance value chain.

Embracing Technology and Regulatory Changes

Technology adoption, particularly AI-powered underwriting, automation, and data-driven pricing tools, is becoming increasingly prevalent across insurers and brokers. These advancements are crucial in navigating inflation, rising claims costs, and delivering competitive products in a complex market environment.

There is also a growing recognition that the traditional models are no longer sufficient for brokers and MGAs to serve clients effectively. As such, regulatory reforms are being advocated for, with BIBA urging the UK Government to ease regulations, simplify rules, and reduce reporting requirements to foster growth and attract new entrants, especially smaller firms and brokers.

Leveraging Modern Legal Structures

The industry is also leveraging modern legal structures such as Guernsey-based insurance vehicles, known for their regulatory innovation, efficiency, and tax advantages. These offshore vehicles are proving to be important for MGAs and brokers seeking flexible capacity solutions, international distribution benefits, and optimized risk pooling structures, supporting expanded market participation.

Announcements and Updates at BIBA 2024 and BIBA 2025

Notable announcements at these events include Generation Underwriting, a leading MGA specializing in mid-market and SME businesses, launching its new e-Trade platform at BIBA 2024. The platform is designed to serve mid-market and SME businesses effectively.

Moreover, BIBA 2025 in Manchester saw over 9,500 delegates, making it one of the busiest to date. The event provided an opportunity for a catch-up with Pro Global about MGA services for brokers who want to scale up and distribute more cover lines.

The Future of the Insurance Industry

As the insurance industry continues to evolve, MGAs and brokers are seeking to reshape their roles through smarter structures, improved tools, and greater control over capacity. Mechanisms such as Protected Cell Companies (PCCs) and captive insurance vehicles are being used to manage volatility and establish greater operational independence.

Despite the digital transformation, the industry values trust, judgement, and human interaction. As such, the emphasis on personal relationships is expected to grow as the sector becomes more digitally enabled.

[1] Regulatory Challenges and Calls for Reform

[2] Decline in New Broker Registrations

[3] Insurance and Pensions as a Core Growth Sector

[4] Technology Adoption in the Insurance Industry

[1] MGAs and brokers are advocating for regulatory reforms, urging the UK Government to simplify rules and reduce reporting requirements, as traditional models are no longer effective in serving clients well in the evolving insurance industry.

[2] A concerning trend observed is the decline in new broker registrations, which might suggest a challenging time for growth in the industry unless effective measures and reforms are implemented to attract more entrants, especially smaller firms.

[3] As the insurance and pensions sector demonstrates promise as a core growth sector, the focus is on fostering growth and innovation within this industry, with events such as BIBA 2024 and BIBA 2025 serving as platforms to showcase and discuss new ideas and solutions.

[4] Financial investment and technological advancement in the insurance industry are increasingly prominent. Key technology trends include AI-powered underwriting, automation, data-driven pricing tools, and e-Trade platforms, with Generation Underwriting's new platform being one example showcased at recent events.

Brokers and Managing General Agents (MGAs) are Reshaping their Functions in the Business Sphere