Part I: A Steady Marketplace: The Program Administrators and Managing General Agents (PA/MGA) market has remained remarkably consistent from 2008 to 2009, despite the outbreak of the worst financial crisis in more than 70 years. While the number of respondents perceiving market growth has declined since last year, the outlook remains quite upbeat, especially given the year’s tumultuous market conditions.
Part II: Operations: Carriers are still flexible with regard to the services that PAs/MGAs provide, including system use and claim handling. Ninety-five percent of respondents expect the PA/MGA to underwrite, rate, quote and bind the business, as well as issue and service policies, up from 80 percent in 2008. Loss control and premium audit services remain important to some carriers, securing 40 percent and 42 percent, respectively — roughly unchanged year-over-year.
Part III: About the Respondents: This year, the number of traditional multi-line insurance carriers increased from 50 percent to 63 percent, with specialty carriers slipping to 34 percent. The response in 2007 was equivalent to 2008. More than half of all respondents had 2008 GWP of less than USD100 million, and 24 percent were between USD101 million and USD500 million. None wrote more than USD1 billion in 2008.