Bridgehaven Specialty is a recent but notable entrant in the UK insurance landscape. After securing regulatory approval in mid-2023 and writing its first MGA business in January 2024, the company expects to reach £500 million in gross written premium by year-end. This rapid growth reflects a broader trend: MGAs and capacity providers are seeking more efficient, transparent, and aligned partnerships in a changing market.
Chief underwriting officer Paul Dilley (pictured) explained that Bridgehaven was established to address inefficiencies in the traditional MGA-capacity provider relationship. “Traditional models duplicate tasks – an insurance company has a compliance department, the MGA has a compliance department, so you’ve got duplication on duplication. We saw an opportunity to simplify the model, streamline it, and make it more financially efficient,” he said.
Dilley is clear that Bridgehaven is not a conventional fronting operation. “We’re a specialty insurer, a hybrid insurer. There are connotations about fronting as a pass-through. We retain risk as an insurance company on each and every MGA that we write, and we behave as if we’re writing 100% of the risk.” This approach, he noted, is gaining traction in the UK and Europe as MGAs look for more flexible and effective capacity solutions.
Building alignment and transparency is central to Bridgehaven’s model. Dilley describes four key factors for partnership: credibility, capability, scale, and alignment. “Those factors need to be present for a partnership to succeed. If you’re all making money, you’re all making money. And if you’re not making the required returns, you all stand equal to that. That allows for more open conversations about how to grow the business profitably for everyone involved.”
When selecting MGAs, Bridgehaven looks for organizations that understand their target segment and have a clear “right to win.” Dilley emphasizes the importance of underwriting capability and a willingness to identify and address gaps. “The perfect MGA never walks through your door, so you need to help them identify and address any gaps. Supporting MGAs is an ongoing process – whether that’s providing additional capacity, helping with compliance, or supporting growth.”
Bridgehaven’s approach to data and technology is pragmatic. “We want to touch data as little as possible – the more times you touch it, the more chance there is for error,” Dilley said. “We use a universal tool, distriBind, to take in risks from the MGA, put it into a common language, and store it in our data warehouse.” This single-touch approach is designed to improve data accuracy and timeliness, and a developing reporting suite allows MGAs and reinsurers to see portfolio performance and compare it against original expectations.
While Bridgehaven is monitoring developments in AI, Dilley believes it’s too early to fully embrace the technology. “You need a mature process before you can get value from AI. For now, the focus is on building robust, accurate data flows,” he said.
The reinsurance market remains volatile, and Dilley believes hybrid models can help both MGAs and reinsurers manage through cycles. “Transparency of data allows reinsurers to see exposures in real time,” he said. “Our MGA proposition needs to be cycle agnostic – it should work in both hard and soft markets. If you only survive in a hard cycle, that’s not sustainable.” Bridgehaven uses reinsurance structures to help manage volatility, buying risk XOLs and cat XOLs to take volatility out and focus on managing attritional loss ratios within agreed parameters.
Looking ahead, Bridgehaven’s growth strategy is threefold: helping existing MGAs grow, expanding its UK presence, and establishing a European platform following its recent acquisition in Ireland. Dilley acknowledges that scaling up brings new challenges, including maintaining consistency and supporting MGAs as they grow.
He is realistic about the complexities of the hybrid model. “The perfect MGA doesn’t exist, and alignment isn’t always easy,” he said. “Regulatory requirements are evolving, and competition in the hybrid and fronting space is increasing. Ensuring all parties remain aligned over time is an ongoing challenge.” Market cycles and volatility require constant vigilance, and Dilley stresses the importance of price adequacy and knowing when to grow and when to hold back.
For reinsurers or MGAs considering a hybrid partnership, Dilley emphasizes transparency and alignment. “If there isn’t alignment or it’s weighted unfairly, it won’t last,” he said. “Agreeing on aspirations and business targets is key. If everyone is aligned to the same outcomes, you can overcome challenges as they arise.”
Bridgehaven’s first year reflects both the opportunities and complexities of the evolving MGA and hybrid insurance landscape. By focusing on efficiency, transparency, and practical alignment, the company aims to build partnerships that can weather market cycles and deliver value for all parties involved.
