Optimism grows as MGAs find their place

Following his attendance at the Monte Carlo Rendezvous in Monaco and Wholesale, Specialty and Insurance Association (WSIA) event in the USA, Adam (Amiga Specialty Group MD), shares his insights from the two events.

The Rendezvous and WSIA Conference are two huge events in the specialty calendar, and I was pleased to be at both to meet with the market; and explore how industry trends are shaping underwriting and decision-making.

It’s no secret that the market for most business lines has been softening in recent times, which, while a cyclical expectation, can be a challenge for insurers and their partners. The casualty market is particularly affected and, while property has been more insulated, its buoyancy is beginning to level off.

Despite this, both conferences exuded a sense of optimism, and the mood remains positive, particularly around emerging markets such as parametrics and cyber. The newer spaces are finally finding a natural equilibrium as pricing matures. After some understandable natural volatility insurers are welcoming an increase in predictability and while, pricing remains softer than ideal, reduced volatility is bringing in greater stability and confidence.

Looking at the industry more widely, capacity remains available, with carriers and reinsurers open to new partnerships, especially with experienced teams and proven track records. It was really positive to see how responsive insurers are to working with new MGAs that bring expertise and quality to the table.

The role technology plays in pushing forward insurance innovation was also front of mind for many delegates with the phrase on everyone’s lips being “artificial intelligence”(AI). The speed that the technology is developing, particularly agentic AI is creating opportunities and pitfalls for all elements of the insurance chain.

On the plus side AI can support the industry to manage and draw insights from the wealth of data it holds. It also offers tools to help us all be more efficient and faster at responding to customers, so this is an opportune moment for new businesses in particular to leverage recent advancements. However, any steps forward must be made with caution and an eye on how they might impact client relationships. We all know insurance is a people and relationships-driven business so nobody should develop an over-reliance on automation because it risks alienating clients and turning interactions into purely transactional experiences which erode trust and prevent real insurance experts showing their skills. The consensus is that we must wield AI as a judiciously used tool to enhance our businesses - not replace a business proposition.

Overall, the picture for MGAs such as Amiga Specialty is bright, despite the various market challenges. We’re in a dynamic period with levers such as geopolitics, technology, climate and uncertainty affecting insurance in ways we haven’t seen before. This makes specialist MGAs particularly well positioned to consolidate their role in the insurance distribution chain and there is strong demand for experienced MGA partners. It all combines to create significant opportunities for specialist expertise such as that found at Amiga Specialty.

Success for all will depend on balancing innovation with relationship-driven service and maintaining underwriting discipline. For MGAs, the future looks bright, provided we continue to adapt, build trust, and deliver value in a rapidly evolving landscape.