Approval Granted for Avatar MGA Project
Avatar MGA Ltd, a newly established managing general agent (MGA), has made a significant entry into the insurance industry. With approval as a Lloyd's coverholder and from the UK's Financial Conduct Authority (FCA), the company is poised to make its mark.
A Strategic Approach
Avatar MGA has set its sights on the US mid-market property risks, targeting total insured values ranging from $25 million to $1 billion. This strategic focus aims to meet the demand in this specific segment by creating an efficient underwriting business.
The MGA employs a data-driven model, combining advanced technology with experienced underwriting. It leverages Verisk analytics to assess both primary and secondary catastrophe exposures, ensuring robust risk management and efficient underwriting processes.
Strong Industry Partnerships
Avatar MGA benefits from significant partnerships. Three syndicates at Lloyd's provide backing, enhancing its underwriting capacity and credibility. The Aon reinsurance team offers crucial reinsurance support, while South African insurer Santam provides investment and strategic support, helping diversify Santam's geographic reach and business portfolio.
A Team of Industry Experts
Avatar MGA is led by an executive team of industry experts, including Simon Clapham as CEO designate, Adrian Williams as COO, and Clare Bailey as head of property. The company operates without a large middle-office support team, delivering a highly productive operating model.
A Promising Future
The partnership with Avatar is an important step towards Santam Group's 2030 FutureFit strategic goals, particularly international growth and diversification. Avatar MGA Ltd, a next-generation managing general agent, is set to commence binding business from August 1st, 2025, and is poised to make a significant impact in the US mid-market property insurance market.
In addition, other MGAs such as Specialty MGA UK, a client-focused MGA offering flexible and alternative solutions, have also made their entry into the market. Specialty MGA UK, approved as a Lloyd's Coverholder, is focused on hard-to-place risks and will commence binding business in the future.
Sources: [1] Avatar MGA Ltd - https://www.avatarmga.com/ [2] Santam - https://www.santam.co.za/ [3] Aon - https://www.aon.com/
- Avatar MGA, with its focus on the US mid-market property risks and an efficient underwriting business, aims to meet the demand in this specific segment using both advanced technology and experienced underwriting.
- Avatar MGA's strategic partnerships include backing from three syndicates at Lloyd's, reinsurance support from Aon, and investment and strategic support from South African insurer Santam, which helps diversify Santam's geographic reach and business portfolio.
- The finance industry is seeing a growth of new managing general agents (MGAs) such as Avatar MGA and Specialty MGA UK, which are set to make a significant impact in the property insurance market through innovative underwriting strategies and flexible solutions for hard-to-place risks.
