Capacity Place for MGAs and MGUs

Withdrawal of Existing Capacity

You may have recently lost capacity support and need to find replacement capacity quickly.

Concerns with Existing Capacity

You may be concerned that existing capacity support for your program may be withdrawn. Often, this has nothing to do with the underwriting performance of the book but could be due to changes in personnel, strategy, risk appetite, financial strength ratings or availability of licenses of your Capacity Providers.

Many MGAs and MGUs with Lloyd’s capacity have become increasingly concerned with continuity of support with Syndicates unexpectedly going into run-off, Syndicate business plans not being approved until the last minute and with increased bureaucracy and cost.

Trade-Up on Quality of Security

You may be seeking capacity support from an insurer with stronger Financial Strength Ratings in order to be able to be more attractive to brokers and insureds and/or are concerned about potential downgrades of existing capacity support.

Mitigation of Capacity Risk 

You may be reliant on a few capacity providers at present and proactively want to reduce your capacity concentration risk by broadening support.

Broaden Product Offerings

You may be seeking to add new products or launch entirely new lines of business and require capacity support to achieve this.

Desire for Greater Flexibility, Scope or Limits

You may be seeking greater underwriting authority (such as moving from prior submit to fully-delegated), the ability to write larger limits or greater territorial scope, offer wider product coverage or have (greater) claims handling authority.

Improved Commercial Terms

You may be seeking better commission or fee arrangements or move from a 1-year agreement to a multi-year with Capacity Providers.