at Lloyd’s, the person (individual or corporate) who manages a syndicate, conducts the underwriting, invests syndicate funds and prepares syndicate accounts.
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An underwriting agent which has permission from Lloyd’s to manage a syndicate and carry on underwriting and other functions for a member.
Insurance Encyclopedia
Managing agents
Corporate bodies responsible for running Lloyd’s syndicates. They appoint the active underwriter and the staff. The mana ing agent’s agreement sets out the duties, powers and remuneration of the agent and obligations of the member. Since 2003 managing agents have been granted franchises to operate within Lloyd’s. Some even provide capital to the syndicates they manage in which case they become corporate members. Lloyd’s has published a number of codes of practice for managing agents.
Managing agents agreement
A standard form agreement between a member and the managing agent of a syndicate on which the member participates which sets out the powers of the managing agent and the obligations of the managing agent and the member towards one another. There are two forms of managing agent’s agreement: the managing agent’s agreement (general), which applies to every member that has a members’ agent and the managing agent’s agreement (corporate) which applies to every member that does not have a members’ agent. Copies of current versions of these agreements are annexed to the Agency Agreements Byelaw.
Managing general agent (MGA)
US: A specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer. Accordingly, MGAs perform certain functions ordinarily handled only by insurers, such as binding coverage, underwriting and pricing, appointing retail agents within a particular area, and settling claims. Typically, MGAs are involved with unusual lines of coverage, such as professional liability and surplus lines of insurance, in which specialized expertise is required to underwrite the policies. However, MGAs also write some personal lines business, especially in geographically isolated areas (e.g., western Oklahoma, North Dakota) where insurers do not want to set up a branch office. MGAs benefit insurers because the expertise they possess is not always available within the insurer’s home or regional offices and would be more expensive to develop on an in-house basis.
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An agent standing between an insurer and other agents. The MGA sells to retail agents, who then sell to the consumer. MGAs often are said to have the pen because they are given the authority to accept, underwrite, and price submissions received from retail agents.
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MEDICAL,USA: Independent contractor authorized to appoint personal producing general agents (PPGAs) on behalf of an insurance company and who may represent more than one company.
Managing general underwriter (MGU)
Used in life and health companies instead of managing general agent (MGA). The terms have been used interchangeably, and there is little real distinction.
Managing Insurance Risks in Insurance Industry
Claims and underwriting processes are subject to regular review from internal and external audit and from reinsurers. Exposures to insurance are managed through Reinsurance, reducing claims volatility and providing access to global expertize in specialist areas. From Pricing perspective the Product actuary prepares the cash flows based on various assumptions, conducts profit testing, sensitivity analysis and determine the premium rates. All product developments consider risk management and mitigation strategies ensuring that the risks accepted, and reward in terms of value creation, consistent with the Risk Management Policy.
Managing Insurer’s Financial Risks
Investment performance and asset allocations are reported and analyzed regularly Liquidity is monitored. Products are reviewed and asset liability capability is reviewed annually.
Managing Insurer’s Operational Risks
The Functional heads perform on going risk profiling that seek to ensure that operational risks are identified, assessed, recorded and managed and that controls implemented are effective and consistent with the Board’s risk appetite. Key risks are monitored regularly. Risk Management Versus Science : Science advances knowledge, and presumably anything that advances knowledge tends to reduce subjective risk. Yet as science advances, new doors to new unknown are opened, thus creating a new chain of uncertainties. However, the net effect of scientific advances is very likely to reduce subjective risk feeling by increasing one’s confidence the eventual solution of future problems. The potential effects of science on the Insurance industry are profound
Managing Insurer’s Strategic Risks
The Risk Management plan is reviewed each year by the Risk management committee as well as the Board of Directors. Business initiatives to support these strategies are identified for each functional unit and actively managed through project roadmaps and business operating plans as part of daily operations.
Mandataire General
The title used by a Lloyd’s General Representative in certain countries, predominantly those that are French speaking.