Next Gen: MGAs – Serving the Next Generation of Risks

At our recent MGAA Next Gen event at Lloyd’s, MGAs – Serving the Next Generation of Risks, a clear message emerged: MGAs are uniquely positioned to respond to emerging risks through speed, specialisation and innovation.

Hosted by Emily Lewis, the session brought together founders and market innovators to explore how the MGA model is shaping the future of insurance – and why it continues to attract the next generation of talent.

A key theme throughout was how MGAs are addressing fast-evolving and uncertain risks that sit outside traditional insurance comfort zones. Mark Titmarsh, Co-Founder and Head of Insurance at Testudo, focused on artificial intelligence, where liability frameworks are still developing. He noted that responsibility for AI outputs often sits with end users, while software and model providers increasingly distance themselves from liability. This creates significant complexity, particularly around emerging risks such as the potential mental health impacts of AI and the use of healthcare chatbots, where incorrect guidance could lead to bodily injury and liability claims. While the AI insurance market remains small and early stage, its long-term potential is significant, with coverage expected to develop as claims experience matures. For now, underwriting discipline and careful management of aggregate exposure remain critical.

The role of MGAs in unlocking new markets was illustrated by Eilís O’Keefe, VP – Carbon Markets at Kita. As the first carbon insurance specialist in the London market, Kita was established to address a key barrier to the growth of carbon markets: unmanaged risk. Originating from Lloyd’s Lab, the business has scaled rapidly, writing its first policy in 2023 just two years after founding. Kita provides cover for risks including physical loss to carbon projects, political risk impacting carbon credit transactions, and credit or non-payment risk involving banks and traders. Initially focused on voluntary carbon markets, the business is now expanding into compliance markets such as CORSIA airline schemes, with Lloyd’s providing critical credibility and international reach.

Michael Robinson offered a founder’s perspective on how the MGA model enables rapid experimentation. His proposition, Gable Sure, focuses on homeowners and mortgage-linked insurance, using insurance to substitute part of a lender’s credit risk. This enables 100% lending while reducing lender exposure to around 55% loan-to-value. Built in weeks rather than months, the business reached market in approximately three months, with access to capacity cited as the primary challenge. Strong risk controls were central to gaining support, including property suitability checks and a focus on loan-to-income ratios rather than deposit size. To further demonstrate the model’s viability, the team established their own mortgage lender, which is now issuing around 8,000 mortgages across the UK.

The panel discussion, featuring Rob Jarvis (TMK) and Freddie Scarrett (Gallagher Re), reinforced why MGAs continue to act as powerful drivers of innovation. Unlike traditional insurers – where new initiatives can often be deprioritised – MGAs are built for focus, speed and controlled risk-taking. While delegated underwriting can present challenges if poorly structured, the panel agreed the model works effectively when supported by strong expertise, aligned interests and a clearly defined niche. MGAs were also highlighted as attractive environments for younger professionals, offering broader exposure, faster-paced working environments and more entrepreneurial opportunities.

Overall, the session highlighted that MGAs succeed when they combine innovation with discipline – pairing deep expertise with a clear market opportunity and strong alignment with capacity providers. As risks continue to evolve, MGAs will remain central to how the market adapts, and an increasingly compelling place for the next generation to build a career in insurance.