Elliot Richardson delivers keynote at inaugural European MGA Summit
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The European MGA as the Next Frontier: Elliot Richardson’s Keynote at The Insurer’s Inaugural European MGA Summit
Elliot Richardson, Vice Chairman and Chair of International, Howden Re delivered the keynote address at The Insurer’s inaugural European MGA Summit in Amsterdam from 10-11 June,
Dubbing the European MGA market “the next frontier,” Elliot's keynote highlighted the market’s significant growth potential. Based on Howden Re’s data in its industry-first MGA report, “Agents of Change,” the European MGA market is expected to more than double in the next five years, growing to $50bn from today's $20bn.
“It's the market you'd want to be in for the next decade and beyond,” Elliot said.
“Today, we have nearly $700 million of revenue in Howden Re, 50% of which comes from MGAs. It absolutely is at the heart of what we do,” said Elliot. “The reason we love it is because we grow so quickly with each other, MGAs really appreciate what we do. What we have to do, though, is create something that's an end-to-end solution. This goes beyond simply finding capacity or following traditional routes. It’s also about anticipating our clients’ needs, understanding when they’ll look to fund their business, how much capital they’ll require, and what their aspirations are, whether that means eventually selling, passing it on to family, or building a lasting legacy. So, you really have to build the whole solution.”
Elliot believes that there is a lot of potential for the European market, driven by entrepreneurial spirit, private equity, and innovative structures like hybrids and fronting vehicles. He also commented on the European MGA market’s history, including how the insurance sector has evolved over the last 100 years.
The rapid success of MGAs has already been proven in the United States and Australia, he commented.
“Australia has almost a 20% market share now in the MGA space and is growing rapidly. We believe Europe has the potential to follow the trajectory we're seeing in the United States, mirroring the evolution of the MGA model. In our view, the European market represents the next frontier,” Elliot said. “That seems ridiculous when you talk about how it's a $20 billion market today, but actually, we think it's only just getting started.”
As we gear up for what is to come, Elliot underlined that collaboration is key and “there's plenty of room for everybody” in the growing market. He said now is the time for everyone to grow and a market in which everyone can win.
“A $20 billion market is no longer an experiment - it is a proven opportunity. We now have a chance to scale in a space that could exceed $50 billion in three to four years’ time.”
