The latest update from Corin Underwriting;
Brokers are simultaneously demanding carrier-grade rigour and rapid product innovation from MGAs, according to survey findings from Corin Underwriting (“Corin”). Some 81% of brokers want MGAs to obtain an AM Best Performance Assessment, and 77% would favour partners that have already secured one.
Yet public take-up of the assessment remains modest three years after its launch, underscoring a widening “credibility gap” between what brokers expect and what most MGAs can currently deliver. Capacity security is another flashpoint. 98% of brokers will only place high-hazard risks with MGAs backed by A-rated carriers, yet regulatory pressure and rising rating fees have already been identified as the single biggest growth barrier by almost half of MGAs and a third of carriers.³
Andy Hurrell, Founder of Corin, commented:
“Brokers are asking MGAs to deliver carrier-grade governance and start-up-speed innovation at the same time. Our poll shows 81% want an AM Best Performance Assessment, yet only a handful of MGAs have taken the plunge. Until more of the market proves it can pass that test, a credibility gap will persist between broker expectations and what most MGAs can actually put on the table.”
These tensions surface just as the delegated-authority sector passes another milestone. AM Best reports that MGA-sourced premiums grew 15% per cent to US $89.9 billion in 2024, the fourth consecutive year of double-digit expansion; meanwhile 57% of carriers plan to increase MGA capacity over the next two years.
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