’A dedicated regulatory framework would not only recognise our unique role, but also reinforce the credibility and trust brokers place in working with MGAs,’ says director
Most brokers believe that the FCA should introduce MGA-specific regulation, according to data from Corin Underwriting.
Under current rules, the FCA continues to regulate all types of insurance intermediaries in the same way.
However, the figures published today (17 March 2025) show 68% of brokers agree that MGAs should be regulated separately from insurers and brokers, while 67% indicate they would be more inclined to work with MGAs if such a framework were introduced.
A total of 147 brokers were surveyed between 5 December 2024 to 6 January 2025.
Corin Underwriting said the data suggested a shared desire for greater clarity and recognition of MGAs’ contributions to the market.
Tom Stephenson, director at Corin Underwriting, said: “The current regulatory framework for MGAs is confusing.
“While we act as a true MGA, underwriting and managing risk on behalf of insurers, the FCA still treats us no differently to other types of intermediary, such as insurance brokers, despite our distinct responsibilities and operational structure.
“A dedicated regulatory framework would not only recognise our unique role, but also reinforce the credibility and trust brokers place in working with MGAs like Corin Underwriting.”
MGAA view
Mike Keating, chief executive at the Managing General Agents’ Association (MGAA), echoed Stephenson’s views, feeling that having MGA-specific regulation would enhance transparency, credibility and operational clarity across the sector.
Read: FCA signals potential ‘industry-wide redress scheme’ for motor finance commissions
Read: UK insurance sector is strong because of regulation – FCA’s Matt Brewis
Explore more regulation-related content here, or discover other news stories here
He said: “These survey results support the continued dialogue the association enjoys with the FCA around the topic of a dedicated regulatory framework that reflects the distinct role MGAs play in the insurance ecosystem.
“A tailored approach, once fully evaluated, would assist in enhancing transparency and operational clarity and strengthen the confidence organisations have when partnering with MGAs.
“This is a vital step towards ensuring the regulatory landscape evolves in line with the innovation and value MGAs continue to bring to the market.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
No comments yet