MGA business will prosper under the proposed reforms at
Lloyd's.
The UK's £4.7 billion MGA market will become an even
more popular feature of the London market in 2020, even as
competitive and regulatory pressures increase. Established
players that can survive the increased scrutiny and pressure to
perform will emerge from 2020 as bigger, better run and more
profitable. New start-ups, or those without a track record, may
find themselves out in the cold as capacity is realigned.
Both carriers and established MGAs will be keen to explore the
new opportunities opening up as a result of planned reform in the
Lloyd's market. The syndicate in a box proposals, for
example, could dramatically reduce entry costs averaging around
£20m over the traditional three-year incubation period for
new syndicates. With 80 applications already open following the
lead set by Munich Re, the prospects here look good. The
Lloyd's risk exchange is another exciting development
