Thursday, December 9, 2021

Responsible authorities and the European market

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“With the soft market from the early 2010s to 2018, it was an opportunity for most people to keep their powder dry and in most cases not try to do anything too dramatic,” he said. “And then with the Desil-10 project and the turn of the market over the last few years, people are now seeing the opportunity to step out of their comfort zone and be a little more entrepreneurial or a little more challenging. And some of that is flowing into the representative authority (DA) market. That’s great. “

Presenting a particularly interesting challenge for the Brexit sector, he said it was a lot of thinking about how to move the EU market forward, as implementation progresses. The big players pick their options early and tend to establish their own entity within Europe to handle the growing. DA Strategy opted for this approach, setting up DA Strategy Global in Hamburg to help MGAs who wanted to find a way to market without establishing a separate entity.

“It provides MGAs, especially those based in London and elsewhere in the UK, to give second underwriters a chance at DA Strategy Global to stay in an organization that has an EU license and is passported across the EU and then can underwrite that business,” said DA Strategy Global. So what we propose is the economics of scale offerings for those MGAs.

Currently, DA Strategy has received a handful of clients, but adding more clients to this offer will enable businesses to add substantial amounts to this model, allowing customers to deliver a package offer in front of them.

Rowley said it is an interesting mix of businesses that are interested in the benefits provided by DA Strategy Global. Generally speaking, they leaned towards small business, when they initially considered the effects of Brexit, perhaps because they did not feel ready to go to Europe because of their small scale or limited business. At the time, they did not see the business case for establishing a Brexit solution, he said, but they have reached a scale where it has become necessary.

Read more: MGAs – What are their biggest challenges and opportunities?

“[For many], It is too late to set up their own entity in an easy way, so they prefer to use the DA strategy model for access, ”he said. “So, usually it’s small sized companies. We had [several businesses] Come to us – we have one that is brand new to us and another that came to us very recently where a new team of them came on board that they didn’t have last year who want to write a significant proportion of EU business and they need a solution. So they saw the opportunity to go to Europe, and now want to access it.

This is an example of a range of businesses looking to access a Brexit-friendly solution, he said, a range of new businesses, small existing organizations that did not have the opportunity two years ago, and existing companies that have adopted new teams that want to access that portfolio. . For some of these businesses, there is an element of anticipation surrounding Brexit before choosing a solution. But the other side, he said, was the hunger for the ability to enter Europe. Many power-givers were hesitant to go to Europe through an entity that they were not sure would be there in the long run.

They thought ‘let’s be a little behind’, he said, but now that power givers and other players in the market are coming back to town to trade, there’s a more relaxed attitude. Now carriers are choosing to help companies that want to add a department to write European business, which is why MGAs are now opening that door.

Forward, Rowley predicts continued interest in market players seeking to enter the European market, especially as UK carriers are building up their vast portfolios in their open market, direct business.

“So I think, although the DA business and the DA market, instead of growing as they have for the last two decades, were quite flat in the first half of 2020 and 2021, now it’s starting to start again,” he said. . “And I think activity should flow through the demand for European access.”

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