The European managing general agent (MGA) sector is experiencing significant changes, according to Enrico Bertagna, managing director of Bowood Europe. In a recent article published in The Insurer, Bertagna described how the industry is moving from its initial growth stage into a more mature and strategically focused phase.
Bertagna noted that while some large MGAs are developing into pan-European organizations with greater sophistication, most mid-sized or tier two MGAs are at an important decision point. "A few large MGAs are evolving into pan-European entities with increasing sophistication," said Bertagna. "But the majority – tier two MGAs – have now reached a pivotal moment. They must decide how to progress. This could mean expanding into new products or new territories."
The article highlighted several issues facing the sector, including increased competition for capacity and private equity interest in the market. It also pointed out that currently, capacity is exceeding supply but suggested this may change as quality becomes a primary focus for companies moving forward.