A carrier’s need for growth and profitability has to be closely monitored and controlled in the PA/MGA space. Every respondent in this year’s survey indicated that they had audit procedures in place to assure adherence to established risk selection and underwriting guidelines, financial billing, collection, remittance and banking guidelines, claim reporting, adjusting and settlement guidelines. Even though some changes have taken place in the number of audits conducted each year, including a notable increase in the percent of respondents doing four or more audits, rising to its highest level since 2008, this year’s results reflect the current and historical importance of the carriers’ PA/MGA management process.
Posts Tagged ‘profitability’
The challenge of balancing profitability with market share continues for carriers writing PA/MGA program business. This market dynamic was reflected in the level of responses for maintaining rate level (56 percent) and new business production (50 percent) as the largest challenges.
Even though responses to the questions on the perceived size of the PA/MGA market continue to reflect it as large, the respondents this year returned to the views of the earliest years of the survey. The largest percentage of respondents (43 percent) believed the market to be sized at USD30 billion to USD40 billion. This range tied with the percentage of respondents (43 percent) believing that the market is sized at USD20 billion to USD30 billion. Interestingly, no respondents believed the market was smaller than USD20 billion or larger than USD50 billion, a first. Fourteen percent of respondents felt the market stood between USD40 to USD50 billion, the highest that number has been since 2008 when it came in at 13 percent.
A key feature of GC Capital Ideas is its Videocast series. Here we review recent video posts: