Front Cover Logo.png

Performance through actuarial and data driven services

quotation-marks-pink reverse.png
quotation-marks-pink.png

    I would recommend Mulberry Risk to carry out any independent actuarial work. We have already engaged them to provide further services. Their regular updates and additional support ensure we operate as a true virtual insurer, matching the skill and expertise you would find in a high quality PRA regulated environment.

Andy Hurrell - Managing Director

Corin Underwriting

They are at their strongest for MGAs and Underwriting Agencies with the following characteristics:

         Privately owned

         The CEO/MD/Chairman is the primary shareholder.

         GWP is between £5m-15m

         Start-ups (credible team with proven track record)

         Emerging (2-3 years trading with a credible team)

         Established (4+ years with data with a good track record)​

 

 

        GWP of £5m-15m

        Poor data quality in need of improved risk and insurance analytics

        Unattractive product lines e.g. Aus, PI, high risk EL/PL

        Capacity at Lloyd's

CapacityProtector is one of three 'pillars' we have identified to protect and maximise the sale value of an MGA. Find out more about our other pillars here: GrowthAccelerator and ProfitMaximiser.

 

Learn more about how we helped Corin Underwriting Here

Super Mulberry.jpg

Our CapacityProtector Superheroes help MGA's secure and protect capacity every day.

We have identified that MGAs are at particular risk where they have:

MGA CapacityProtector. 
What is it?

Capacity (both at Lloyd's and the company market) is harder and more competitive to secure.

Protecting your capacity is the best strategy, in addition to getting your book in a position to be most attractive to a capacity market.

No product line is safe. Syndicates are reducing stamp, and this is pushing rates up. The company market is following this behaviour too.

"With capacity secured and longevity promised, an MGA can be worth up to 10 x EBITDA"

* CapacityProtector, Growth Accelerator & Profit Maximiser

Initial Page Superheros.jpg

The MGA CapacityProtector is one of 'three pillars'* Mulberry Risk had identified to protect and maximise the sale value of an MGA.

It has been developed following Lloyd's introduction of its 'Decile 10' strategy in 2018, which put pressure on syndicates to identify the worst performing 10pc of their books, and then correct or eliminate this.

In 2019, Lloyd's took further aggressive action:

1

2

3

John Neil (CEO) openly stated that delegated underwriting platforms perform worse at Lloyd's than open market risks and that there will be a focus on DUA performance.

Lloyd's forced Vibe, Pioneer and Acapella into run-off (November 2019).

Syndicates became more aggressive in withdrawing DUA facilities for poor or marginally performing books.

The IMPACT of all this is:

CapacityProtector
puts you in the best position to:

Ensure current capacity providers consider you a leading MGA, through performance, data and compliance.

Keep and secure capacity ensuring your MGA maintains its resale value. Without capacity, an MGA is almost worthless.

Get data and track record into a leading position, creating appetite within the market to write your capacity.

Case Study & Testimonial

Our client, Corin, is a Managing Director owned and operated MGA writing Casualty led risks.

Corin wanted reassurance of their numbers in order to validate overall loss rations. This was needed for internal board meetings and for discussion with supporting capacity.

Capacity will often use benchmark statistics, which don't reflect the niche that Corin or other MGAs underwrite in. Mulberry Risk provided Corin with output to support their better than market loss ratios. Using benchmark data and Corin's own statistics, a reliable and independent view of Ultimate Loss Ratios was produced.

The detailed actuarial review investigated and reported upon:

       Suitability of loss development factors.

       Selections of target loss ratios.

       Adequacy of large loss case reserves.

       Selection of attritional loss ratio.

       Selection of large loss load (and run off).

       Determination of appropriate IBNR.

Our output allowed Corin to present their numbers to the board and capacity providers with confidence.

Who is it for?

Mulberry Risk's CapacityProtector is focused on the UK MGA market, but can be transferred to the US, Australia and Canada. It proves most beneficial for MGA/Underwriting Agencies with the following characteristics:

           Privately owned.

           The CEO / MD / Chairman is the primary shareholder.

           GWP between £5m-15m.

           Start-ups (credible team with proven track record) / Emerging (2-3yrs trading & credible team) /                Established (4+yrs with data & track record).

We have identified the MGAs are at particular risk where they have:

1

2

3

4

Poor data quality

GWP £5-15m

£

Unattractive Product Lines

e.g. Aus, PI, high risk EL / PL
(scaffolders / roofers / leisure etc.)

Capacity at Lloyd's

Particularly where there is poor or marginal profitability for underwriters.

What does it deliver?

CapacityProtector forecasts loss ratios, creates communication strategies with insurers and helps secure your future as an MGA.

In order to facilitate this, we include ULR forecasts, capacity management / meetings and capacity sourcing.

Why Mulberry Risk?

We work with MGAs and they account for more than 90% of our revenue. We have experience of running an MGA.

We have over 100 years combined experience of working with the London market on DUA facilities, from both a broking and insurer viewpoint.

Our approach is recognised and appreciated by insurers, helping to protect your capacity relationships

Our templates ensure that when seeking new capacity, your business is shown in its best light to providers.