Oldwick, NJ –(Business Wire) – Driven by premium growth, authorised underwriters (DUAEs) are playing a larger role among insurers in meeting more specialized insurance needs, according to the best Report.
Experience and expertise have helped DUAE expand the scope of their responsibilities to insurers/partners. Some of the fastest growing sectors in the current global insurance market include construction, energy, healthcare, environmental, professional and cyber liability. The combination of inflation, changes in climate-related risks, and exposure to cyberattacks requires specialized insurance to address the inherent risks.
Sridhar Manyem, director of AM Best, said: “Factors related to these risks have driven demand-side demand for a more specialized approach to insurance and have created substantial premium growth opportunities for the general agency (MGA) sector. and insurers play a vital role.”
According to the report, MGA premiums hit a record $60 billion in 2021, or 19 percent, up from $51 billion in 2020, up 6 percent. However, since insurers only report that the actual premiums generated by MGAs exceed $60 billion for MGAs that generate more than a 5% surplus of premiums; there may be many MGAs whose premiums are not captured due to the 5% threshold.
According to estimates by AM Best, the premium generated through the MGA market has doubled over the past decade. The acquisition and consolidation of insurance distributors has led to a decline in the number of brokers, while the number of MGAs has increased. Professional brokers have turned to the MGA business, providing insurance companies with more cost-effective access to new markets.
Recognizing the growing importance of DUAEs, AM Best launched Best’s Performance Assessment earlier this year, which provides a framework for differentiating DUAEs. For more information, visit https://www.ambest.com/assessment/methodology.html.
To access a full copy of this segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=324087.
AM Best is a global credit rating agency, news publisher and data analytics provider focused on the insurance industry. Headquartered in the United States, the company operates in more than 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.For more information, please visit www.ambest.com.
Copyright © 2022 AM Best Rating Services, Inc. and/or its affiliates. all rights reserved.