Specialty insurance cover can be difficult to find, but one way to develop new products is via specialist MGAs. Here’s the word;
Specialist MGAs are playing an increasingly important role in maintaining access to capacity across difficult areas of the commercial motor market, according to new research commissioned by Direct Commercial Limited (DCL).
The findings, based on polling of brokers across the wider commercial motor insurance market, suggest niche fleet sectors continue to experience pressure around insurer appetite and placement capacity but specialist MGAs are increasingly helping brokers secure viable cover where mainstream markets have become more cautious.
Waste, hazardous and recycling fleets were identified by brokers as the single hardest commercial motor segment to place due to limited market capacity (71%).
DCL said the findings reflect the increasingly specialist nature of parts of the commercial motor market, particularly in sectors with higher claims severity, more complex operational exposures or inconsistent insurer appetite.
For DCL, the findings point to a market where specialist MGAs are increasingly helping brokers bridge gaps in capacity rather than leaving risks without viable options.
That trend was reinforced when brokers were asked how often specialist MGAs had provided the only viable quote or terms available for a niche commercial motor placement.
More than seven in 10 brokers said this now happens either sometimes or often (72%).
DCL said the findings demonstrate how specialist MGAs are increasingly acting as critical market problem-solvers in more complex areas of commercial motor insurance.
The research also showed broker confidence in placing niche risks with specialist MGAs remains strong.
While the majority said confidence levels remain stable, almost four in 10 brokers surveyed said their confidence in placing specialist commercial motor risks with MGAs is now much higher than it was 12 months ago (39%).
DCL said this reflects growing recognition that specialist MGAs are increasingly combining underwriting expertise, stable appetite and responsive service in ways that brokers value highly when dealing with more difficult placements.
Joe Hantson, Deputy CEO at Direct Commercial Limited, said:
“What this research shows is that pressures still exist in certain parts of the commercial motor market, particularly within more specialist or operationally complex fleet sectors.
“But it also highlights the increasingly important role specialist MGAs are playing in helping brokers secure viable solutions for clients where mainstream appetite may be more limited.
“At DCL, we continue to invest in specialist underwriting capability, tailored products and our in-house claims team because brokers increasingly need reliable markets that can support difficult placements consistently and over the long term.”
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