The rise and rise of the MGA

Mike McKenna, of London MGA Falvey Cargo Underwriting, describes how the growth and success of his company has shown that the MGA model works and has a bright future in the marine insurance market

From the humble beginnings of Falvey Cargo Underwriting as a managing general agent (MGA) 25 plus years ago, we have witnessed the transformation in attitudes and perception of the MGA.

THEN…

In the early days, there were far less insurance binders in the marine insurance market. The opportunity was more common for general, P&C property risks. The way of conducting business was also much different. Business came to the Box, no one was marketing themselves – this was a new concept.

There was nearly no mention of positioning oneself for growth and winning business. A Lloyd’s underwriter once told someone at Falvey, “You mean you actually go out and sell!?” MGAs were merely seen as an alternative distribution channel.

NOW…

The perception of MGAs has improved in time as a result of their ability to adapt to the ever-changing needs of customers, and more importantly perform, for the betterment of capital providers.

While insurance companies change their interest and strategies, MGAs offer stability to the market by their ability to interchange the insurance companies that back them. This allows the MGA to survive through various cycles of the insurance market.

Additionally, MGAs are a great platform for developing digital processes and new technologies. These are particularly well received in today’s market of providing a winning customer experience. MGAs that invest in technology offer a solutions-focused advantage to some of the common challenges they face in cost, administration and resources.

Today, MGAs are developing, or are partnering with third parties, to offer solutions for claims management, selfservice payment, customer service, and more.

THE FALVEY MODEL

In the case of Falvey, our MGA established a significant presence in a niche market. An MGA that is a specialist in its field knows the ins and outs and is a valuable contact that can be trusted to understand the risks and set premiums accordingly.

This type of specialisation offers underwriters the opportunity to enter a space without the need for significant infrastructure. By already having experience, processes, systems, licenses and staff for a particular class of business, they offer insurers the ability to try different products in different regions without taking on the investment

“While insurance

companies change their interest and strategies, MGAs offer stability to the market by their ability to interchange the insurance |companies that back them. This allows the MGA to survive

through various cycles of the insurance market.”

Mike McKenna Falvey Cargo Underwriting

themselves.

Falvey has also made significant investment in technology and innovation. Our proprietary technology has afforded us a place in the forefront of the market by delivering state-ofthe-art systems that have vastly improved efficiency. Proprietary software automates every aspect of the quote, bind, issue, claims/recovery, invoicing, loss control phase. This is done all in real time, all in one system, with the ability to share information on a hierarchal basis internally and externally with brokers, carriers and reinsurers. This makes the business transparent to all parties involved, while requiring less administrative help to process.

The system helps track portfolio profitability with customizable reports and gives the ability to drill down to individual vessel type/commodity, brokerage firm/individual broker, line of business, or by individual underwriter.

FASTER PAYOUT

Most recently, the online claims filing process was overhauled. Customers can now file a claim in under 10 minutes by answering a series of guided questions. The new process reduces back and forth between Falvey and the customer and accesses more upfront information, which leads to quicker turnaround time and faster payout.

The biggest innovation uses API technology to fully integrate with our customers to get real-time information from their systems and issue instant certificates for coverage.

Falvey has embarked on an amazing use of analytics incorporating live information on the COVID-19 outbreak, overlaying with underwriting data. This provides a “COVID Risk Index” on all accounts which allows our underwriters to proactively reach out to accounts, and help the underwriter make decisions. With this information, Falvey can report details back to our supporting syndicates on the impact to the business.

Above all else, Falvey has upheld its mission statement to make a profit for our underwriters.

Falvey is an entity constantly working towards improvement to ensure the best possible experience for our customers and valued partners. Our underwriting service and product innovation work together, positioning our MGA to be the best in the market.

UNDERWRITING STABILITY

Our underwriting results speak for themselves. Falvey has demonstrated underwriting stability, profit to our partners, and increased gross written premium for the past 10 years – all despite turbulent market conditions.

Product innovation includes an overhaul of Falvey Systems, that serves as the internal and external interface for all underwriting data. Last updated in 2016, the system is now much more robust, efficient and intuitive. It also integrates with DOMO, bringing valuable data insights to our staff and clients.

Falvey Shippers Insurance, a division of FIG, offers transactional shippers interest insurance via API. The API allows for a one-click to access a certificate of insurance for high-volume shippers. This product has become the industry-leading integrated, gateway, and batch reporting solution. In 2020, they handled more than 500,000 transactions.

Claims intake innovation allows customers to file claims within minutes, by answering a short series of questions. The new process is the first of its kind in the cargo insurance market.

Moving into the new decade, FIG continues to deliver our assureds, brokers and security partners our promise of service and results.

LOOKING AHEAD

The perception of the MGA has evolved and will continue to evolve to maintain growth. The most successful MGAs are integrated and can provide a multitude of solutions relevant to underwriting.

There are other external factors that will affect the evolvement of MGAs, especially considering the current conditions of the impacts of COVID-19, the “Great Resignation” and the ability to find and retain talent, the frequent entrants of new InsurTech into the market and

Asia 24 June 2022 Singapore

Friday 24th June 2022, Singapore All Times in Singapore Time (SGT)

08:15 - 9:00 : Delegate Registration and Refreshments

09.02-09.40: PANEL DISCUSSION: Box Overboard! Panellists: Captain Siddharth Mahajan, Senior Loss Prevention Executive Asia, Gard, Captain Nitin Chopra, Senior Risk Consultant, Marine Risk Consulting Asia-Pacific, Allianz, Mats Segolson, Vice President, Head of Claims – Singapore, Skuld

09.40-10.00: PRESENTATION: Around the World in 80 Days Presenter: John Sullivan, Managing Director, V.Scope Risk Management

10.00-10.50: PANEL DISCUSSION: Can the Asia Pac Insurance Market Remain Relevant? Moderator: Surani de Mel, Claims Manager, Shipowners’ Club Panellists: Jonathan Ranger, Head of Marine APAC, AIG, Chris Coupland, Senior Vice President, Regional Marine - Asia, Marsh, Surani De Mel, Claims Manager, Shipowners, Rama Chandran, Head of Marine, Asia, QBE Insurance (Singapore) Pte Ltd, Paul Hackett, Joint Global Head of Marine, Canopius 12.50-13.50: LUNCH BREAK AND NETWORKING

13.50-14.35: PANEL DISCUSSION: Alternative Fuels – What Next for the Marine Market? Panellists: Ansuman Ghosh, Director Risk Assessment, Thomas Miller P&I Ltd, Akshat Arora, Senior Surveyor, Standard Club, Capt. Jagadeesan Natarajan, General Manager Chartering and Operations, Orient Marine Co., Ltd. (Singapore Branch), Capt. Jon Elliott, Head of Risk Management, SeaQuest Intermediaries (L) Ltd

14.35-15.20: PANEL DISCUSSION: Making the Most of Your People Panellists: Benjamin Fong, Director Marine, Gallager, Kenneth Cheong, Marine Underwriting Manage, HDI Global SE Singapore, Nick March, Senior Vice President, Head of Singapore, Skuld

15.20-15.40: NETWORKING BREAK

10.50-11.10: NETWORKING BREAK

11.10-11.50: PANEL DISCUSSION: Is the True Cost of Covid-19 Materialising in Claims? Moderator: David Cox, Chief Executive Officer, MatthewsDaniel Panellists: Cedric DeClercq, Practice Leader & Claims Manager APAC Specialty Lines AXA XL, Amanda Hastings, Legal Counsel, Western Bulk, Senior Representative, The Standard Club

11.50-12.10: CASE STUDY: A Clear Example Presenter: Jan-Eege Klop, Manager Commercial APAC, SMIT Salvage

12.10-12.50: CASE STUDY: How Green is Your Shipping? Panellists: Ms Wan Jing Tan, Senior Lawyer, Gard, Jacob Damgaard, Associate Director Loss prevention, Britannia, Michael Walls, Managing Director, Marine and Cargo Leader – Asia, Marsh 15.40-16.20: PANEL DISCUSSION: Technology – The Good, the Bad and the Ugly Panellists: Kenneth Lim, Assistant Chief Executive, Maritime and Port Authority of Singapore, Andy Yeoman, Chief Executive Officer, Concirrus

16.20-16.40: PANEL DISCUSSION: Hands Off My Booty! Panellists: Daniel Ng, Head of Shipping Engagement, Information Fusion Centre, Ravi Muthusamy, Head Legal Claims and Insurance, X-Press feeders

16.40-17.00: PANEL DISCUSSION: War and How Sanctions can Play a Role in Reducing the Risk Presenter: Mike Gerasymov, Risk and Insurance Manager, Swire Shipping Pte Ltd