A survey of insurance brokers has uncovered strong backing for the establishment of a dedicated regulatory framework for MGAs. 68% of the 147 specialist brokers polled by Corin Underwriting feel that the Financial Conduct Authority should regulate MGAs separately from insurers and brokers. Further, 67% of brokers indicated they would be more inclined to work with MGAs if such a framework were introduced.

The FCA continues to regulate all types of insurance intermediaries in the same way. Corin believes that establishing a dedicated regulatory framework for intermediaries acting solely as the agent of the insurer would enhance transparency, credibility and operational clarity across the sector, ensuring MGAs are recognised for their unique contributions to the insurance value chain.

Mike Keating, CEO of the Managing General Agents’ Association commented: “These survey results support the continued dialogue the association enjoys with the FCA around the topic of a dedicated regulatory framework that reflects the distinct role MGAs play in the insurance ecosystem. A tailored approach, once fully evaluated, would assist in enhancing transparency and operational clarity and strengthen the confidence organisations have when partnering with MGAs. This is a vital step towards ensuring the regulatory landscape evolves in line with the innovation and value MGAs continue to bring to the market."

Tom Stephenson, director of Corin, added: “The current regulatory framework for MGAs is confusing. While we act as a true MGA, underwriting and managing risk on behalf of insurers, the FCA still treats us no differently to other types of intermediary, such as insurance brokers, despite our distinct responsibilities and operational structure. A dedicated regulatory framework would not only recognise our unique role but also reinforce the credibility and trust brokers place in working with MGAs like Corin.”

Corin’s poll was undertaken from 5th December 2024 to 6th January 2025.

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