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Delegated authority market grows as MGAs expand globally
Industry executives linked growth to about 20% annual expansion, plus private equity investment and demand for automation of bordereaux data.
Reinsurance News interviews VIPR Solutions CEO Paul Templar and Chief Revenue Officer Tony Russell describe delegated authority as an expanding distribution model across insurance and reinsurance, driven by fast growth in the delegated authority and MGA market.
Russell said the MGA segment is attracting private equity and that specialist underwriters are increasingly forming their own MGAs, citing roughly 20% per year growth, which he estimated at about $260 billion globally. He added that delegated authority lets carriers pursue growth by accessing specialist underwriting expertise and entering new territories without setting up direct operations.
Templar and Russell also pointed to market conditions, saying delegated authority tends to be especially attractive to carriers coming into soft market cycles because it can offer more certainty and protection. They noted that many carriers and managing agents are focused on expanding distribution channels without adding budgets, which increases pressure to automate or streamline how they collect, cleanse, and manage bordereaux data.