HARTFORD, Conn., July 25, 2016 /PRNewswire/ -- The Managing General Agent market has continued to grow at a rate exceeding that of the property-casualty market overall, according to a new study by Conning, Inc.
"In our analysis of the MGA and program market we found continued strong growth in excess of the overall property-casualty market, along with the natural ebb and flow of relationships and players in this dynamic market," said Matt Sternat, Vice President, Insurance Research at Conning. "The MGA market is becoming more material to the overall market as well, representing 14% of all commercial lines business. However, with year after year of high growth rates relative to the rest of the industry, a cautionary note should be sounded about the underwriting profitability associated with growth in this market. The MGA market has experienced difficulties in the past, and certainly could again in the future."
The Conning study, "Managing General Agents: Continued Growth, but at What Cost?" presents the MGA marketplace dynamics, trends, players and outlook. Conning's proprietary MGA database was expanded and includes information on more than 600 unique MGAs and more than 200 insurers that actively use this important distribution channel.
"MGAs face the same challenging market conditions as the rest of the property-casualty industry, and there are some signs that these market impacts are starting to take effect," said Steve Webersen, Head of Insurance Research at Conning. "In our surveys and discussion with MGA executives it was noted that competition is intensifying, and new entrants, not having as deep an expertise in a class of business, are pricing irrationally. However, experienced MGAs and insurers should be well-suited to adapt to changing environments by maintaining focus and underwriting discipline."
"Managing General Agents: Continued Growth, but at What Cost?" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading global investment management firm with approximately $105 billion in assets under management as of June 30, 2016.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.
*Asset total includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Goodwin Capital Advisers, Inc., Conning Investment Products, Inc. and Octagon Credit Investors, LLC which are all direct or indirect subsidiaries of Conning Holdings Limited (collectively "Conning") which is one of the family of companies owned by Cathay Financial Holding Co., Ltd. a Taiwan-based company.
Contact: Michael Warner