Sicsic Advisory: Supporting MGAs across their business lifecycle

Managing General Agents operate at the sharp edge of insurance innovation, requiring both agility and rigorous discipline. Navigating this dynamic landscape—from securing capacity to managing compliance with regimes like the Consumer Duty—demands expert strategic support. Sicsic Advisory works with MGAs’ boards and senior managers to interpret complex issues, helping them deliver sustainable business models through commercial, operational, and financial resilience. We act as a trusted advisor, providing our clients with expert regulatory insight and senior-level industry experience.

A growing force in the market
MGAs are integral to the UK and Ireland insurance markets. These agile entities have a reputation as innovation hubs, unlocking new opportunities by concentrating specialised expertise and leveraging new technologies. They respond rapidly to evolving risks, providing essential capacity and tailored solutions in niche and complex markets where traditional insurers often reduce exposure. This specialisation makes MGAs crucial partners for brokers and carriers alike, helping the industry remain competitive and relevant.

The MGA sector is one of the fastest-growing segments in the insurance industry. Based on the MGAA’s own research, there are over 300 MGAs operating in the UK, collectively managing more than 10% of the country’s £47 billion general insurance premiums. Looking ahead, carriers are increasing their commitment, with more than half expecting to increase their MGA capacity over the next two years. Continued investment in digital innovation, such as Artificial Intelligence (AI) and automation, and a strong focus on specialist underwriting will drive future growth, ensuring MGAs remain a pivotal force in the insurance value chain.

Growth can bring a greater regulatory scrutiny; this is why our services are essential. A larger footprint and increased specialisation mean that managing governance and risk becomes more complex, especially when dealing with delegated authorities and capacity providers.

Strategic support for the MGA business lifecycle
Sicsic Advisory provides practical and measured support at every stage of an MGA’s lifecycle, from initial authorisation through to managing strategic growth.

Our team, with deep regulatory and operational experience, focuses on ensuring compliance is fit for purpose and balanced with commercial objectives. The Financial Conduct Authority (FCA) requires firms to have systems and controls that reflect their nature, scale, complexity, diversity, and risk; we help clients calibrate what that means in practice.

Sicsic Advisory has developed a deep knowledge of MGAs. Our recent works include:

• Authorisation for a brand new MGA to support a bank’s insurance offering.
• Feasibility study for the set-up of an MGA alongside an existing broker.
• Review of conflict interest within a growing consolidator between MGAs and broking firms.
• Reviewing risk management frameworks and providing short-term support for Board Risk Committee presentations and completing broader framework reviews for a very large MGA.
• Independent verification on product governance and fair value in the context of an FCA intervention
• Completing an overall health check for specialist MGAs, helping them identify and mitigate regulatory risks.
• Multiple due diligence on MGAs.

Due diligence and transaction support
We have worked on over 50 transactions since 2020. We provide robust regulatory support to both investors and trade buyers, ensuring they can make informed decisions when executing their strategies.

• For sell-side clients, we perform a “Fit for sale” assessment, identifying and helping to bridge material gaps in governance or regulatory compliance.
• For buy-side clients, our risk and regulatory due diligence focuses on assessing the sustainability of the business model and the fitness of the management and governance structure. We identify regulatory risks and opportunities alongside any potential past liabilities.
• Post-deal, we support Change in Control (CiC) process and help with subsequent integration and remediation work.

In a market demanding resilience, specialism, and high standards of conduct, the need for trusted strategic advice has never been greater. We look forward to working with the MGAA community to navigate today’s regulatory challenges and support them to equip their businesses for long-term, sustainable success.

To learn more, visit our website: https://sicsicadvisory.com/