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Cunningham Lindsey launches new MGA Guardian with support from AUS

09 th Feb 2016

Expert in this field

Cunningham Lindsey has launched MGA Guardian – a range of services for Managing General Agencies (MGAs) supported by Ambant Underwriting Services (AUS).  The services on offer include the provision of a support structure to ensure regulatory compliance, in particular with the new conduct risk and Lloyd’s reporting requirements. MGA Guardian also provides a range of back office functions, including underwriting and claims reporting systems that today’s professionally run and compliant MGAs require.

Leo Gibbons, Global Specialty Markets Director, Cunningham Lindsey said:
“The MGA model is a fundamental aspect of underwriting in the London insurance market – with nearly £5bn in GWP generated through MGAs alone, and 39% of Lloyd’s business is written under delegated authority.  As regulatory scrutiny increases, particularly conduct risk reporting within the Lloyd’s market, capacity providers want to be reassured that the MGAs they support have the appropriate infrastructure, claims handling and compliance procedures in place, to successfully manage their business portfolio.

“We want MGA Guardian to be the partner of choice for MGA capacity providers, MGA investors and underwriting teams ensuring robust, compliant systems that support the underwriting function. The services are designed to allow MGAs to focus on delivering their business plans, safe in the knowledge that their business infrastructure and regulatory reporting is fit for purpose, in addition to having full claims portfolio visibility.”

Chris Butcher, CEO of AUS said:
“We’ve brought our expertise to complement that of Cunningham Lindsey to launch MGA Guardian. Their international claims management and loss adjusting skills plus their ability to offer conduct risk compliant reporting, adds to the core launch and host facilities we provide. AUS specialises in getting MGAs up and running quickly and effectively, then supporting them successfully as they grow. Our solid track record and strong reputation in the market is proof of this.”

A further benefit of the MGA Guardian model is that underwriting teams or investors in start-up MGAs do not need to relinquish equity in their business to obtain the required regulatory framework or support services. Other MGA models can require up to an 80-90% equity stake in the MGA, in return for providing a compliant route to market.

Peter Staddon, Managing Director of the Managing General Agents’ Association (MGAA) welcomed the proposition: “Rigorous and disciplined underwriting models are key aspects of building an effective and profitable MGA business.  We welcome any initiatives which enable delegated authority business to access support services that ensure their expertise isn’t compromised while meeting current and new operating standards.”

The key benefits of the MGA Guardian service include:

  • A full incubation service providing full administrative support – including launch and host, access to underwriting and policy admin software, back office services and the creation and management of bank and trust accounts.
  • A regulatory umbrella and support in FCA license applications or achieving Lloyd’s coverholder status, as well as ongoing monitoring and audit measures to maintain compliance, both for start-up MGAs and existing MGAs.
  • Access to experienced and long-term investors who will support initial working capital costs.
  • Full claims management services either controlling the claims process and managing existing TPAs, or fully integrated management and handling of claims on a white labelled basis from first notification of loss through to payment.
  • 24/7 help lines aligned to product specific services – such as vehicle repair, valuation risk surveys or contractor networks.
  • Real-time claims reporting providing access to carrier, MGA and clients on all claims activity and crucially, complaints management, allowing the MGA to select the level of information reported to each party.

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