PwC: Establishing, scaling and sustaining a successful MGA – Navigating the MGA lifecycle

Specialty MGAs are becoming a critical nexus for the global (re)insurance market, beyond traditional marketplaces such as Lloyd’s and the US E&S market where they have long operated through and indeed shaped many previous underwriting cycles.

PwC is working with (re)insurers, hybrid carriers, platform incubators, private equity and increasingly credit funds who are queued up to back high-quality MGAs that can access niche, complex, emerging or distressed markets at a lower cost and faster pace than most regulated carriers, particularly when there is technology-driven commercial advantage.

Softening pricing for most specialty classes means that the commercial tension between the high-growth expectations of institutional investors against the technical returns required by capacity providers requires experienced and disciplined management and a business with clear intrinsic value.

The MGA lifecycle – launching, scaling, diversifying and sustaining – requires very different financing, commercial, operational, technology, underwriting and risk management strategies, alongside internal and external capabilities and relationships.

At PwC, we have a long history supporting MGAs on every aspect of their business – from raising capital, to helping scale, transact and realise value, alongside newer capabilities that allow us to perform managed or operating services on behalf of MGA’s to allow management teams to focus more of their time on ensuring commercial success.

Our leading presence in the London Market, close relationships with private and international institutional investors as well as leading MGA technology vendors, alongside our access to the wider international PwC network mean that we have the experience, expertise and relationships to advise on all entry, growth, M&A and exit strategies.

InsurStart is PwC’s new, innovative launchpad for start-up insurance ventures. We’re inviting the brightest emerging underwriters, MGAs and nascent risk carriers to pitch their ideas to a panel of senior PwC leaders and market experts. For successful applicants, we will then bring the depth of the services we can offer MGAs to life through a tailored programme of expert-led workshops and guidance sessions giving privileged access to PwC’s deep insurance expertise across Risk, Actuarial, Consulting, Deals, Tax, and Technology.

MGAs are the ideal platform for bringing innovative coverage and unencumbered solutions to the specialty market, often through collaborative partnerships and addressing emerging risks, technologies and changes in the financial, economic and political landscape. At the same time, new products with untested loss and pricing assumptions will not always work, and some will require exit solutions. We have leading capabilities to support MGAs through their lifecycle of growth, transition, and value realisation.

Get in touch today to learn how PwC can partner with your MGA to accelerate growth, strengthen risk and regulatory foundations, and realize value at every stage of the journey.

About PwC
At PwC we work with insurance businesses to help solve challenges, build trust, unlock value and transform. With over 2,000 insurance professionals within the UK and access to over 17,000 globally we have the breadth and depth of skills to solve the most complex problems.