Insurers pledge support to MGAA

The Managing General Agents' Association (MGAA) has taken a step closer to launch this week after a round of consultative discussions with stakeholders ended successfully.

Last week the MGAA steering committee met with representatives from UK insurers, and today the Committee met with businesses such as accountants, lawyers and IT companies who provide services to MGAs. Both insurers and service providers will be offered associate member status of the MGAA.

Having now met with all interested parties, the Committee believes it has sufficient support to proceed to launch the MGAA at the end of March. Prospective members of the MGAA will receive application forms at the end of this month and the invitation to associate members will follow.

“Without the support of insurers and service providers it would be very difficult to launch this association," said Reg Brown, chair of the MGAA’s steering committee, in a statement. "The running costs in the first year are anticipated to be approximately £250K, which will be raised solely through membership fees. We are therefore delighted that so many of the capacity and service providers agreed that the UK MGA market needs its own association.”

Keith Stern, Lloyd’s Regional Manager, UK & Ireland and also a member of the MGAA steering commitee added:: “MGAs are a well-established and very important part of the UK market that needs to be supported and nurtured. We are therefore delighted to be back the launch of the MGAA and applaud its aims to promote best practice and profesionalism within this growing sector.”

The meetings followed a discussion meeting November, where over 100 representatives from 70 MGAs aired their views on the need to create their own association.

In order to gauge the level of support for the new association a membership proposal was distributed in October. The Committee said it has now received significant interest in the proposal and in joining the association either as a full member or associate.