Q&A
MaryKate Townsend
The MGA sector’s performance in 2021
President/ Manager and senior underwriter CAMGA/ PACIFIC MARINE
Years in the industry 13 Fast fact Before joining the insurance industry, Townsend drove a Zamboni for a living
As the new president of CAMGA, what are your main goals for the organization? We have three, and they all support the main goal of creating more structure and stability for the MGA sector in Canada. The first is education and professionalism; we’ve created a CMGA designation specifically for MGAs and those who want to join an entrepreneurial underwriting environment. This is operated by the IIC. We have also drafted a very robust Code of Ethics that all members of CAMGA agree to meet as a condition of membership. The second is on the regulatory front, where there is much misunderstanding in regulatory regimes across the country. We have started talking with regulators about setting a common minimum standard that all MGA members will have to meet as a condition of membership. This standard of excellence, we hope, will replace the retail broker requirements imposed in certain jurisdictions and create a new CAMGA standard for MGAs in those jurisdictions that have no requirement whatsoever. The third pillar is advocating for the MGA sector with brokers and carriers. These are our business partners, and we collectively, through an association like CAMGA, need to advocate about the benefits of dealing and trading with MGAs. There are huge benefits to both carriers and brokers in trading with our membership, and this is something CAMGA is focused on.
Intact Public Entities helps fund climate change resilience
Intact Public Entities, the public-entities-focused MGA arm of Intact Financial, and the Intact Foundation are investing $1 million through Intact’s Municipal Climate Resiliency Grant to help Canadian cities and towns improve their resilience to the impacts of climate change. “We need to enable municipalities across Canada to build resilient communities together,” said Intact Public Entities president Larry Ryan. “We’re in a unique position to help bring plans to life so we can action change and make a difference.”
How have MGAs handled the COVID-19 pandemic? What should they do to prepare for the next global economic crisis? I would rate MGAs with a grade of A+. By our nature, MGAs are nimble and quick to react to new problems, whether they be new risks or in our operating models. MGA members had plans in place for remote work and simply executed them. Because of the unique personal relationships underwriters have with brokers, most of those lines of communication remained productive. Capacity has been a little challenging as carriers rethought their appetites, but that’s something that MGAs are quick enough to find solutions to.
Are there any specialty coverages that emerged or have become popular over the pandemic? How can MGAs capitalize on them? CAMGA, as an association, is working to assist our members on the tech front; we would like to produce a few technology platforms that will allow an even more seamless switch in the event of more drastic working restrictions. We are also seeing many members think twice about diversifying their capacity in terms of amounts and numbers of providers. A heavy reliance on a smaller number of providers ties one’s hands in the event of a global shock like we’ve seen these two years.
RAISE Underwriting snaps up United Surety
RAISE Underwriting has reached an agreement to acquire United Surety, an independent Ontario-based MGA. Founded in 2020, United Surety provides surety products to brokers and their clients in Canada and the US. “We are thrilled to welcome the talented United team to RAISE and look forward to a smooth transition of the business,” said RAISE CEO Matt Baynton. “By combining the expertise of RAISE and United, we will be able to offer our brokers a robust array of products in the construction and real estate space.”
CHES Special Risk expands presence in Quebec
CHES Special Risk, which operates in Quebec under the name CHES Solutions Spécialisées, has opened a new office in Quebec City. “We are seeing very strong business growth from the retail brokers in and around the Quebec City region,” said CHES president and CEO Gary Hirst, “and in accordance with our successful strategy of being available to brokers in their region, we are delighted to support the Quebec City insurance industry with our award-winning service, extensive capacity and appetite.”
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