The UK is to get its own managing general agency association as the organisers look for industry funding.
The Managing General Agents’ Association (MGAA), which will be principally for UK based underwriting agency businesses, has published its membership proposal and called for prospective members and initial funding support ahead of its formal launch next month.
The membership proposal, published by the MGAA steering committee, is being sent to over 200 MGAs. It provides more information about how theMGAA might work and be structured and seeks comments and feedback from these businesses.
Speaking at the publication of the membership proposal, Reg Brown, Chair of the MGAA’s steering committee, said: “MGAs are a long-standing and highly profitable sector – transacting over 10% of the annual commercial general insurance premium income in the UK insurance market. However, because in terms of regulation, their interests are not specifically aligned with brokers or insurers, their remit is effectively unrecognised by many market participants, the regulator and clients.
“The confusion this creates obscures what a ‘good’ MGA should look like and is not viable for the professional development of the sector, or the insurance market in general. The MGAA will aim to change this by providing the sector with independent representation and a single voice driving for real transparency and best practice in the insurance market.”
He added: “We have taken the first steps to establish a platform that can properly represent the interests of the MGA sector in the UK, but we cannot do this alone. The backing and active participation of MGAs and the market is essential.”
In addition the Association is seeking an indication of interest in membership.Membership of the MGAA is open to underwriting agencies based in the UK, the British Overseas Territories including Gibraltar and the Crown Dependencies of Guernsey, Jersey and the Isle of Man. The MGAA added its aim is to achieve a membership representing 75% of the market within the first year of operation.
The Association is planning a formal launch meeting for members and supporters on 23. November 2010 in the Old Library Lloyd’s.