It is a good time to be an MGA. There has been significant growth amongst both new and traditional agencies. Inevitably, many MGAs are looking at the potential next stage of their evolution – becoming a full-stack insurer.
According to an Insurtech UK survey, 57% of its MGA members would transition to a full-stack insurer if possible. However, there are very few companies which have made this transition. No insurtechs have become full-stack insurers via the UK’s financial services regulatory body, the Prudential Regulation Authority (PRA) – its New Insurer Startup Unit, set up in 2018, has yet to approve an application.
In March 2022, PKF sponsored an InsTech event deep-diving into what deters those who want to transition, investigating the implications of an MGA becoming a full-stack insurer. This included a discussion of some of the key challenges and considerations when moving from MGA to full-stack insurer including the regulatory and compliance implications, capital requirements and disciplilne and where to go for the relevant expert guidance and some alternative approaches.
Robin and Matthew were joined on stage by:
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Martin Watson, Partner, PKF
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Rachel Hillier, Partner, Capital Law
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Matthew Jones, Partner, Anthemis
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Christen Smith, Chief Revenue Officer, Flock
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Kenneth Underhill, Director, ICSR
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Richard Leftley, Executive Vice President Global Sales, MIC Global
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Rory Tanner, Government & External Affairs Manager, Insurtech UK
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Michael Ashton, Senior Executive, Gibraltar Finance