Topic MGAs
Brokers’ Number 1 obstacle when selling cyber
October 18, 2023 by Jason ContantFor brokers, the biggest obstacle in selling cyber insurance to clients might not be what you think. Traditional roadblocks to a sale include price, board approval, and executive complacency. But here’s an unlikely naysayer that’s making the rounds of brokerage…
Clarifying Nativelands: What the decision means to brokers
October 11, 2023 by Stephen F. Gleave, partner, DLA Canada (Toronto)Canadian Underwriter published an article on Sept. 19, 2023, entitled “Court draws distinction between a brokerage and a consultant.” The article deals with an important decision of Ontario Superior Court Justice Edward Morgan released on July 25, 2023. The matter…
How this ratings agency views the Canadian MGA market
October 10, 2023 by Jason ContantRatings agency AM Best will likely maintain its positive outlook on the global delegated underwriting authority enterprises (DUAE) market, an executive said Friday during AM Best’s Canada Insurance Market Briefing in Toronto. “On Dec. 5, 2022, we did assign a…
Don’t believe the hype: Why the hard market is softening
July 11, 2023 by David GambrillCanada’s P&C insurance industry is showing signs of market softening despite the many reasons for a hard market to persist, according to a June 2023 Marketplace Insights report from Lloyd Sadd, a Navacord brokerage. The report cites many reasons industry…
Court result suggests confusion about MGAs and insurers
June 23, 2023 by David GambrillManaging general agent (MGA) Can-Sure Underwriting failed to quash a motion to correct a misnomer in a flood damage claim, arguing the claimant incorrectly identified the MGA as an insurer. Ontario’s Superior Court also rejected Can-Sure’s argument that the claimant,…
How Lloyd’s is addressing MGA pain points
June 13, 2023 by Jason ContantLloyd’s is looking to address a major pain point for MGAs — duplication of compliance requests from syndicates. The insurance marketplace is looking to kickstart and facilitate conversations with syndicates on compliance and due diligence, Jane Harley, head of delegated…
Broker regulator outlines approach to MGA licensing
June 12, 2023 by Jason ContantOntario’s broker self-regulatory body is looking at its licensing exams with a stronger focus on commercial lines and MGAs, Registered Insurance Brokers of Ontario (RIBO) CEO Patrick Ballantyne said last week during an industry event. “Those exams are currently under…
The state of the cannabis insurance market in 2023
May 30, 2023 by Jason ContantEven though inflation cooled to 4.3% in March from a high of 8.1% last summer, its effect is still being felt on personal and commercial lines alike. The cannabis insurance market is no exception. Carriers across the board are looking…
What’s new with cannabis insurance regulations?
May 18, 2023 by Jason ContantOne MGA is questioning a regulatory change in Ontario that dropped a mandatory requirement for licensed producers (LPs) of cannabis to hold $15 million in product recall insurance and instead raised the commercial general liability requirement to that amount. In…
How insurers will handle new third-party risk-management guideline
May 18, 2023 by Alyssa DiSabatinoCanada’s financial solvency regulator’s new guideline for managing risks associated with third parties (including brokers) will require insurers to find a ‘balance point’ for compliance, one industry expert said. The Office of the Superintendent of Financial Institutions Guideline B-10: Third-Party…
How is the cannabis insurance market faring?
May 9, 2023 by Jason ContantFour-and-a-half years after recreational marijuana use was legalized in Canada, cannabis companies continue to face a number of challenges, including insolvency, consolidation and low or flat growth, according to a recent report from EY Canada. “Established/mature markets — including Canada,…
Why MGAs are here to stay
May 2, 2023 by Alyssa DiSabatinoHard markets have historically offered a tremendous opportunity for growth for managing general agents (MGAs), but industry experts say they will be here to stay even when the market softens. Unlike primary insurers, MGAs provide capacity in specialized areas of…