What are the 3 pillars that MGAs should consider when running a profitable business?

However, once that capacity has been secured and peace of mind exists, what else should MGAs be demanding from capacity providers?

We attended the 2023 MGAA Annual Conference in London, where we had the pleasure of meeting many MGA Partners. Simon McGill – Ecclesiastical’s UK Schemes Development Manager summarises our Schemes proposition in this short interview.

Ecclesiastical has a long-standing belief that world-class claims and risk management go hand-in-hand with capacity. If you like, three pillars any business should focus on.

Here are some reasons why I believe they represent such importance in your offerings and where you should be demanding layers of additional services. Both areas are the only likely occasions your brokers and their clients will have direct exposure to the capacity provider. The level of service, professional offering, empathy, guidance, and ability to find solutions are critical. It’s what we all should be judged on. But what does it look like? What should you be demanding?

Claims Management Information (MI) should be issued to you every month without fail. More frequently if desired too. It contains granular data, trends, causations, and financials as standard. They should ensure that underwriting decisions can be made in real time and with peace of mind by your lead Underwriter.

Any client should have a genuinely positive experience when they need to make a claim, which is ultimately the true test of an insurance offering. MGA’s should be asking themselves, does their provider ensure a full UK-based in-house claims service? Am I getting a dedicated handler, phone number access, or a faceless outsourced solution? You might like to go further and ask for a Delegated Claims Handling Authority. These aren’t for everyone, but they are a route to providing an even more efficient and speedy claims process.

When it comes to Ecclesiastical claims, it is in our DNA to provide peace of mind, and we have a passion for delivering truly outstanding service. This is reflected by our Net Promoter Score of 81, Commercial Customer Satisfaction^1, and multiple industry awards². We’re proud to have been awarded ‘Claims Service Quality Marque’ for the second year in a row. This is awarded to claims teams who have been rated as having consistently outstanding service quality for Speed, Commerciality, Expertise, Relationships, and Communication³.

You should also be insisting on access to hand-picked Claims Supply Chain and Loss Adjusters. This will help your clients maximise the relationship you are providing and give them that continued peace of mind and exposure to industry expertise. People only really get to know their insurer when they make a claim. This is why we’re dedicated to Ecclesiastical to ensuring the highest levels of client satisfaction.

Wages and material inflation are leading to probable buildings underinsurance on a scale not seen for 40+ years. As many as 80% of businesses in England and Wales have an element of underinsurance in their commercial properties.³ The ‘Condition of Average’ clause will be found in most policies. Policyholders are potentially exposed to shortfalls that would prove financially crippling in the event of a claim and underinsurance being applied.

MGA’s should be focused on their capacity, pulling together a survey programme focused on key properties and issue points of contact for the fundamental advice of risk management. This can be on-site or a combination of on-site and desktop. You just need to ask. Ecclesiastical offers free valuations on buildings £6m+, resulting in an average clause waiver once the valuation is accepted, so there is no threat of underinsurance penalisation.⁴

Modern-day risk management extends far past building valuations and face-to-face advice. MGA’s should be insisting on capacity providers with access to risk management guidance written by qualified experts, providing videos, templates, checklists, and forms to help brokers and clients manage their own risks.

Does your provider have a free risk advice line for brokers and clients? 24/7 access to a range of topics such as property protection, security, and health and safety matters? Absolutely invaluable.

So there you have it. Some practical areas of advice I hope will help you in your continued negotiations with capacity providers. Areas where everyone involved should be on the front foot and promoting the very best of what we do.

Underwriting. Claims. Risk Management. The 3 pillars to centre every MGA relationship around.

¹ Ecclesiastical claims satisfaction survey 2023 Q1 – 54 commercial clients who have had their claim settled.

² Claims product solution of the year - Insurance Times claims Excellence Awards 2023.

³ Gracechurch Outstanding Claims Service Quality Marque 2023.

⁴ Subject to underwriting criteria.