Conning--MGA Market Growth Beats Industry but Weakens with Softening Rates

HARTFORD, Conn., July 13, 2017 /PRNewswire/ -- The Managing General Agent and program market growth in 2016 exceeded that of the total property-casualty market by 32 percent, according to a new study by Conning.

"In 2016, comparable firms in Conning's MGA database grew by 4.9 percent compared to 3.7 percent for the property-casualty market overall," said Matt Sternat, Vice President, Insurance Research at Conning. "However, that growth is down significantly from prior year, as the ongoing soft market has affected the property-casualty industry, especially commercial lines. The new entrants to the market are exacerbating the issue, as they are aggressively pricing business and competing for attractive programs."

The Conning study, "Property-Casualty Managing General Agents: Growth Continues, but No Escape from the Soft Market" presents the MGA marketplace dynamics, trends, players and outlook.  Conning's proprietary MGA database includes information on almost 650 current and unique MGAs and more than 200 insurers that actively use the MGA channel.  Additionally, Conning's 2017 proprietary survey of MGA executives provides context and insight into the challenges facing program business today.

"In the past year we have seen insurer exits from the market and reduced risk appetites primarily due to the poor performance in certain lines, led by commercial auto," said Steve Webersen, Head of Insurance Research at Conning. "However, we have also seen the emergence of significant new insurer-MGA partnerships, new programs, and continued strong MGA mergers and acquisitions activity. Looking forward, there is no easing to either the soft pricing market or overcapacity, so seasoned MGA's and program market insurers that have managed through cycles in the past will be best positioned for success."

"Property-Casualty Managing General Agents: Growth Continues, but No Escape from the Soft Market" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.

ABOUT CONNING^®
Conning (www.conning.com) is a leading global investment management firm with almost $113 billion in global assets under management as of March 31, 2017.*  With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.

*As of March 31, 2017, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities.

[5920223]

Contact:         
Michael Warner           
Conning, Inc.
860-299-2408
[email protected]

SOURCE Conning

Related Links

http://www.conning.com