The UK’s MGA market is widening with more than 300 agencies in operation, prompting Commercial Express managing director Duncan Pritchard (pictured) to point to claims performance as the factor that will separate firms competing in a maturing sector.
Claims handling has become an area where brokers increasingly expect clarity and consistency and Pritchard said the industry still gives limited visibility to how claims are managed. “Insurance ultimately comes down to trust at the point of claim,” he said. “Yet few MGAs talk about their claims service at all.. If the broker's got confidence in the claims facility that adds huge value compared to saving a small percentage of premium.”
The pressures on claims are reinforced by sector-wide findings. According to Clyde & Co’s latest report, produced with the MGAA, 77% of MGAs and 91% of carriers believe the MGA–carrier claims relationship needs improvement, with carriers reporting limited progress in consistency and data sharing. The FCA’s expectations under Consumer Duty have further increased scrutiny, with more than half of carriers anticipating rising claim severity and frequency.
Pritchard said the growing number of MGAs has shifted expectations on service delivery. “Ten years ago, the term MGA didn’t carry much weight; now everyone wants to be one,” he said. “The market has evolved rapidly since the pandemic. There are some outstanding MGAs adding real value and others still finding their identity. What’s clear is that price alone isn’t a winning formula anymore. The MGAs that thrive will be those offering genuine service and meaningful data insight.”
The role of data also continues to expand across the MGA sector. Clyde & Co’s study found both MGAs and carriers increasing their reliance on data-led oversight, while also showing rising interest in technology adoption across UK and European markets.
Pritchard described data as central to underwriting discipline. “Our next phase is about data enrichment and intelligent risk selection. You can’t make sound underwriting decisions without it. AI has its role too, not to replace people, but to remove repetitive tasks and give our underwriters more time to think creatively. The MGAs that use data effectively will define the next era.”
With regulatory scrutiny rising in the UK and Europe and operational expectations becoming more demanding, Pritchard said the next 12 months will involve MGAs working to maintain broker confidence through consistent claims performance and data-led processes.
