Majority of MGAs believe the claims process with carriers needs improvement

Over three-quarters (77%) of MGAs say the claims process with carriers needs improvement, up from 59% in 2023, with 91% of carriers sharing this view, according to the MGA Opinion Report by Clyde & Co in collaboration with the MGAA.

The report highlighted the complex landscape the MGA sector faces, shaped by economic uncertainty, a looming softening rate environment, regulatory scrutiny—particularly around claims—and technological disruption.

The claims process remains a critical battleground. As the FCA continues to apply pressure to improve customer outcomes, both MGAs and carriers recognise the urgent need for transformative change.

Over half of carriers (51%) anticipate a rise in the severity of claims over the next two years, and more than two-thirds (69%) expect claims frequency to increase during this period.

Mike Keating, CEO at the MGAA, said, “We have an absolute obligation to dig beneath the surface of claims performance. It’s not enough to say we pay 98% of claims – we need to understand how they’re paid, what the customer experience looks like, and what learnings we can extract. The claims process is the moment of truth for insurance, and right now, we’re failing to make meaningful improvements.”

While 58% of MGAs reported improvements in the speed of communication in the claims management process, 60% of carriers said they had seen no such progress.

Despite this conflicting view, there is broad consensus that significant gaps remain across several critical areas, such as the need for clearer, more consistent processes—particularly when third-party administrators (TPAs) are involved—highlighted by 56% of MGAs and 63% of carriers.

The report also points to growth opportunities. Both MGAs (37%) and carriers (29%) expect specialty lines to see the most growth in the UK MGA market in 2025.

Keating added, “We’re going to see significant growth in specialty lines, particularly around emerging risks. Parametric insurance, climate change-related products, and energy sector innovations are where MGAs will be at the tip of the spear.”

Following specialty lines, 18% of MGAs ranked ‘Other’ and 16% ranked Cyber as the business lines expected to see the strongest growth in the UK this year. Similarly, carriers believe it will be Cyber (17%), followed jointly by ‘Other’ (11%) and Property (11%).

Within the next two years, the majority of MGAs (84%) plan to grow by adding new lines of business, followed by 53% looking to grow through acquisition and 40% aiming to expand into new territories.

When asked about the best environment to grow and develop MGA business, 31% of MGAs chose the London Company Market, while 31% of carriers favoured Lloyd’s.

While the number of carriers who said Europe offered the best environment to grow and develop MGA business dropped slightly this year (14%) compared to 2023 (20%), interest is building in the opportunities presented by growing, dynamic MGA ecosystems across the continent—particularly in the Netherlands, Spain, Italy, and Poland.

Neil McCarthy, Managing Director at MPR Underwriting, noted that MGAs are targeting these markets as a key avenue for growth due to low penetration from competitors.