MGA Alta Signa brings badly needed quality capacity to German market

Fast-growing specialty managing general agent (MGA) Alta Signa has launched into the German market as insurance buyers report the commercial space remains challenging and capacity is still tight. The coming renewals may not be quite as brutal as they have been in recent years, but GVNW committee members told Commercial Risk Europe just before the association’s annual Symposium that the leading insurers are standing firm and capacity remains tight, particularly in critical lines such as D&O and cyber. Fast-rising inflation and the fallout from the war in Ukraine are being cited by leading carriers as good reasons for not relaxing their underwriting discipline in coming renewals, despite relatively healthy underwriting profits reported by most in recent quarters. The arrival of an MGA – led by experienced German market professionals and backed by quality A-rated capacity owned and managed by London- and Bermuda-based risk carriers – will surely therefore be welcomed. Alta Signa is clear that it will not disrupt the market by offering its paper on a cut-price basis to win business. Maximillian Moll, head of the Brussels-based MGA’s new DACH operation, said the company, launched in 2019 by founding CEO Gerard Van Loon and focused on rapidly hardening financial and cyber lines, is in the market for the long term. “This is not an opportunistic hard market play; we are here to add serious expertise and capacity in a technical and highly efficient manner,” said Moll, who cut his teeth at AIG in DACH, Benelux and the Nordics. And the fact that an MGA such as Alta Signa has experienced and well-known underwriters who can make an underwriting decision in 48 hours is a big advantage in such a tough market. GVNW members have been complaining for some time that they do not feel their needs are being met by underwriters who are no longer able to make local, risk-based underwriting decisions. MGAs such as Alta Signa are working with brokers to find solutions and the concept is catching on in Germany. “The MGA concept is really exciting, entrepreneurial and taking root in the German market. We are backed by top-class capacity that does not have a presence in Germany and so we bring a viable, technical and well-known option,” said Moll. Alta Signa already has operations in Austria, Belgium, France, Italy, the Netherlands and Spain. The DACH market was a natural next step. “Germany is the biggest insurance market in Europe and if you want a truly European network, you need to be present there. The hard market has been particularly difficult for German risk managers because so many work for companies with cross-border risks that need individual underwriting attention, which was lacking. Capacity was pulled and crazy prices were imposed even for good risks, and the risk managers could not speak to quality experienced underwriters, especially in D&O. This was an opportunity for an experienced team such as ours, backed by A-rated capacity, with a local presence and with six highly experienced people onboard already,” explained Moll. “We are here to stay. We are looking at long-term relationships backed by stable capacity. We have no legacy systems and have been able to build a technology platform that customers and brokers need. But this technology supports the underwriting decision – it does not lead it, which gives us a competitive advantage. Also, crucially, we can act much faster than the legacy insurers. People are shocked that we can respond to an underwriting request in 48 hours if we have all necessary information. Policy issuance can take up to 12 months in this market but we can issue a policy a couple of days later. This is a big difference,” he continued. So how does he see the market outlook? Largely stable. “I think the hard market is largely done. Now we can expect stable premiums. A few carriers will continue to pull capacity as they face up to the energy crisis, the interest rate environment and supply chain strains coming on the back of Covid-19. So, I do not see reductions in premiums. But it will be stable. I hope for all of us it will be less hectic than the last two years. For us, we will take a professional and technical approach, and if customers and brokers find a cheaper price – fine. We are not a soft-market option. We are a stable and long-term partner and capacity has to be priced correctly,” said Moll. One interesting option that Moll sees for customers during this tough time is moving the renewal back from year-end, perhaps to March or April to make it less stressful for everyone. “Germany is one of the few countries in Europe that sees most renewals at 1 January. If the client decides to move the renewal back three or four months to gain a better deal and give the underwriters more time, why not? Some GVNW members have already decided to do this. I believe it could make sense,” he said.

MGA Alta Signa brings badly needed quality capacity to German market

But don’t expect soft market option: Moll

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