As leading distributors of life, health and wealth insurance products, managing general agencies (MGAs) are an integral part of Canada’s retail financial services landscape. Their importance is underscored by a salesforce eclipsing 30,000 advisors. The practice breadth of MGA advisors, spanning both life and wealth, has garnered attention from not only insurance carriers but deposit and fund manufacturers as well. Firms in the latter categories have viewed MGA advisors as the next frontier.
Although MGAs and their advisors have recorded growth in segregated fund gross sales and annualized new business life premiums over the past three years, headwinds could be lurking on the horizon. None more so than regulation. A lack of clarity and agreement between MGAs and carriers over responsibility for advisor oversight presents MGAs with an existential question; what is the compliance role of the MGA in the distribution of insurance products?
With this in mind the August 2016 Insurance Advisory Service feature story, Between Two Rocks and a Hard Place, examines the relationship between carriers-MGAs-advisors. The feature story tapes into our unparalleled insurance distribution data and industry relationships to provide a comprehensive view of MGAs in the current insurance distribution landscape. How the relationship between carriers-MGAs-advisors may evolve and the subsequent impacts is also discussed.