At the recent Target Markets Annual Summit in Scottsdale, Arizona, a gathering of 2,000 MGAs, program administrators, and carrier executives, Insurance Journal s
at down with Abbie Taylor, executive vice president and chief operating officer of Jacksonville, Florida-based Fortegra. Here is an edited transcript of the conversation.
Insurance Journal: What can you tell us about the MGA space in terms of its size and the factors driving its growth?Abbie Taylor: It’s always great to be back at Target Markets and get a sense of the MGA market more broadly. The market tod
ive years–and MGA growth is outpacing that of the broader P&C market. There are more than 1,100
MGAs and program administrators operating at this point, and we’re seeing strong growth of MGAs in the UK and Europe, as well.
One thing I enjoy about coming to Target Markets is meeting with agents and hearing the deep expertise they bring to their niche markets. Over the years, we’ve seen talented professionals leave large carriers to hang out their own shingle, and there are several reasons for that. They have the expertise, c
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apacity is available to support them, and technology has made it easier than ever to build their own agencies. MGAs today can move with agility and make decisions fas
ter than traditional insurers. Part of what makes these conversations so valuable is understanding the businesses they’re trying to build and how we can support them.
IJ: On the flipside, what challenges are MGAs facing?
AT: MGAs constantly need to adapt to the evolving insurance landscape. Some of the emerging challenges include changing rate dynamics depending on the segment; ongoing technology investments, which are essential to remain competitive; increasing regulatory complexity; and high submission volumes coupled with declining conversion rates. They’re also working to understand how to effectively leverage AI and automation in their businesses.
IJ: What can you tell us about the state of the E&S market?
AT: The excess and surplus lines market continues to expand as the need for specialized, complex risk solutions grows. MGAs are seizing this opportunity by designing tailored products for unique and hard-to-place risks, with specialty insurers like Fortegra acting as essential partners by providing the capacity needed for this expansion.