Story Details
- According to a recent survey by Prestige Underwriting of 99 brokers in the UK non‑standard market, nine in ten brokers believe insurers and MGAs could do more to support renewals and client retention. (Insurance Age)
- The survey revealed a “clear call to action” from brokers: While MGAs are valued for their expertise and responsiveness, brokers say the challenge now lies in helping clients stay covered at renewal — not just placed initially. (Insurance Age)
- According to a separate article in Insurance Business UK, the MGA sector is entering a new phase where “competition, broker expectations intensify” and “brokers are choosing smarter, not wider – and MGAs must prove value or lose ground.” (Insurance Business America)
- Key broker expectations include: greater flexibility and choice for clients at renewal, speed and responsiveness in service, access to decision‑makers, underwriter authority, transparent data and insight. (Insurance Business America)
Case Study: Renewal Value Expectations in the Non‑Standard Market
Background & Challenge
In non‑standard insurance markets (e.g., high risk personal lines, niche commercial risks) brokers rely heavily on MGAs for underwriting appetite, specialist cover and speed of placement. However, renewals are becoming more challenging: clients are more price sensitive, markets are evolving, brokers need MGAs not just to place new business but to support renewal conversations, retention and client servicing.
Findings
- From the survey by Prestige Underwriting: 90% of brokers indicated MGAs/insurers could do more at renewal and retention stage. (Insurance Age)
- MGAs that once may have differentiated purely on distribution access are now facing demands from brokers to show deeper capability (product, insight, service). As one MGA‑industry commentary noted: “The days of winning on distribution access alone … are waning.” (Insurance Business America)
- Brokers are asking for more from MGAs at renewal: e.g., greater flexibility, choice of product, proactive engagement, not simply margin or commission negotiation. (Insurance Age)
Strategic Implication
- MGAs that focus only on new business placement risk losing renewal volume if they under‑deliver at renewal stage.
- Brokers increasingly act as client retention advisors; they expect the MGA partner to provide service beyond quoting – for example, renewal strategy, cover optimisation, insight into risk changes and client advising.
- The enhancement of renewal support helps brokers maintain clients and drives loyalty; the MGA gains via sustained premium flows and less churn.
Commentary & Insights
Why this matters
- In many lines, the cost of acquiring a new client is higher than retaining one; renewal retention is critical for profitability.
- For brokers, the renewal moment is often when clients reassess value, shop around or reconsider cover; strong support from MGAs at renewal can differentiate and retain business.
- The insurance market is under pressure (softening rates in some lines, cost inflation, regulatory changes). MGAs need to demonstrate value‑add (beyond underwriting) to justify their position.
Key strengths & opportunities for MGAs
- MGAs that deliver specialised product knowledge, underwriting speed and strong service can build trust and be seen as strategic partners.
- By proactively engaging at renewal (risk review, renewal strategy, data insight, improvement opportunities) MGAs can help brokers show more value to their clients.
- Offering flexibility (e.g., cover enhancements, bespoke options, risk improvements) at renewal strengthens retention.
- Supporting brokers with data and insight (e.g., risk trends, portfolio performance, claims experience) helps shape renewal conversations and positions MGAs as advisers, not just underwriters.
Challenges & risks
- If MGAs fail to improve their renewal‑support capability, brokers may shift more business to other MGAs or mainstream carriers (broker comment: “brokers are choosing smarter, not wider”). (Insurance Business America)
- The dual demand of servicing both new business efficiently and renewal/retention support can stretch resources. Some MGAs may focus too much on new business growth at expense of renewal service.
- In a soft or competitive market, margins are under pressure; MGAs must find value‑add beyond price to make renewal a compelling moment for brokers/clients.
- Claims performance and capacity stability matter: brokers want MGAs with decision‑maker access and consistent underwriting; delays or volatility reduce confidence. (insurancetimes.co.uk)
Best‑Practice Learning Points
- MGAs should treat renewals as a “fresh opportunity” not a routine administrative event: review risk, client changes, cover alignment, value proposition.
- Develop tools and dashboards that provide brokers with insight at renewal (claims history, benchmarking, risk improvement suggestions) to support client conversations.
- Ensure underwriting/delegated authority frameworks give brokers and clients access to decision‑makers so speed and flexibility at renewal are enhanced.
- Communicate clearly with brokers ahead of renewal periods: what’s changing, what value you offer, what options are available, how to support retention discussions.
- Consider loyalty or retention‑driven incentives (e.g., improved terms for clients with good risk performance, loss prevention services) to add value at renewal.
Final Summary
The call from brokers for MGAs to offer more value at renewal is a timely wake‑up. MGAs are no longer just about access and new business—they are increasingly being judged on how they support renewal, retention and ongoing client value. Those that step up with specialised product capability, service, insights, flexibility and proactive engagement will likely be those that thrive in the evolving insurance landscape. Others risk being seen as commoditised or replaceable at renewal time.
Here are detailed case‑studies and commentary on how brokers are urging Managing General Agents Association (MGAs) to deliver more value at policy renewal time. This covers the context, evidence from recent surveys, strategic implications, and what those in the MGA ecosystem need to consider.
Case Study 1: Survey of 99 Brokers in the UK Non‑Standard Market
Source: Prestige Underwriting survey of 99 brokers active in the non‑standard market. (Insurance Age)
Key Findings:
- 90% of brokers believe that insurers and MGAs could be doing more to support renewals and client retention. (Insurance Age)
- The survey indicates that while MGAs are valued for their quoting speed and niche products, brokers feel the main challenge now lies in helping clients stay covered at renewal, not just placing new business. (Insurance Age)
- Brokers called for greater flexibility, choice of product at renewal, and enhanced service rather than simply relying on renewal by inertia. (Insurance Age)
Interpretation:
This signals a shift in broker expectations: MGAs must now prove value beyond the initial policy placement. Renewals are becoming a litmus test of the MGA–broker partnership.
Case Study 2: Broker Barometer on Value Delivered by MGAs
Source: Direct Commercial Limited (DCL) Broker Barometer. (insurance-edge.net)
Key Findings:
- 83% of brokers say that the insurers/MGAs they work with significantly add value to their brokerage. (insurance-edge.net)
- However, only 48% rated communication between broker and MGA/insurer as “effective”, and 39% rated it as “fair”. (insurance-edge.net)
Interpretation:
While brokers recognise MGAs’ potential for value, there is a gap in consistent execution—especially around communication and service at renewal—all of which brokers identify as areas needing improvement.
Commentary & Strategic Insights
Why the focus on renewals matters
- Cost of churn vs retention: Retaining existing business often costs less than sourcing new business. MGAs that support brokers effectively at renewal help reduce churn and improve long‑term profitability.
- Broker role evolution: Brokers are under increasing pressure to demonstrate value to clients (e.g., cover adequacy, claims service, risk insight). They expect MGAs to support that role.
- Competitive, volatile market: Capacity and underwriting conditions are tight in many segments; renewals become critical as clients review service, cost and cover. Weak renewal service may lead brokers to switch MGAs or carriers.
What brokers expect more of from MGAs at renewal
- Proactive engagement: rather than a passive renewal quote, MGAs partnering at renewal with review of client’s changing risk, cover adequacy, value‑added services.
- Greater flexibility: options, endorsements, newer covers that reflect evolving risk (especially in specialist/non‑standard lines).
- Transparent data and insight: claims history, benchmarking, risk‐improvement suggestions—so brokers can advise their clients better.
- Speed and service: renewal response times, availability of decision‑makers, clarity of terms.
- Consistent communication: clearer service levels, updates, alignment with broker workflows.
Risks for MGAs that don’t step up
- Loss of renewal volume: If brokers perceive that the MGA simply offers “quote and renew” rather than value‑added service, they may shift business.
- Undifferentiated proposition: As many MGAs compete in similar niche sectors, renewal service becomes a differentiator. Lack of value at renewal reduces competitive edge.
- Capacity and stability concerns: Brokers may factor in MGA service at renewal when deciding which MGAs to use; weaker service may lead to fewer mandates.
- Damage to reputation/partner relationships: Renewal experience is a key touchpoint for clients—poor renewal service can impact end‑client perception of both broker and MGA.
Best Practice Steps for MGAs
- Treat renewals as opportunity not just administrative process: incorporate review of client context, risk changes, service proposition.
- Develop renewal‑focused value‑add: risk‑improvement reports, claims analytics, loyalty benefits, tailored endorsements.
- Ensure robust communication channels with brokers ahead of renewal periods: summarise findings, show how cover reflects client’s evolved risk.
- Build transparency around price, terms, service changes (if any) so brokers can explain to clients confidently.
- Use technology/data to support renewal workflow: client dashboards, analytics, document libraries—all make renewal discussions richer.
- Review service metrics at renewal: track retention, broker satisfaction, speed of response, value enhancements offered.
Final Thought
The message from brokers is clear: MGAs must do more at renewals. The industry is moving beyond “write and renew” to “write, service and grow”. For MGAs willing to invest in renewal‑stage value—through service, insight and flexibility—the payoff is likely stronger broker relationships, better retention, and greater differentiation. For those that don’t, the risk is that renewal becomes a point of weakness rather than strength.