As VIPR celebrates its 15th anniversary, the first half of 2024 has emerged as a landmark period in our history. This year has not only seen us reach this significant milestone but also welcome nine new high-profile customers both in the London market and beyond in just six months. This surge in new signings underscores the rising demand for VIPR’s transformative delegated authority technology and highlights our continued influence in supporting and enhancing the delegated insurance industry.
The growth trajectory of the Managing General Agent (MGA) market further emphasises the necessity for robust delegated program business technology.
According to the latest Conning report, the number of MGAs has skyrocketed from 146 in 2014 to nearly 900 in 2023. Simultaneously, insurers and reinsurers utilising the MGA channel have increased from 118 to almost 500. MGA premium volume has also seen a substantial rise, growing from $26 billion in 2014 to over $82 billion in 2023. This expansion signifies a market ripe for technological solutions that can seamlessly connect all stakeholders within the delegated authority arena.
In the first half of 2024, VIPR has successfully continued to expand its reach into five global regions, now proudly serving customers across the UK, Switzerland, Spain, the United States, and Canada. This strategic expansion is a testament to our unwavering commitment to delivering cutting-edge solutions tailored to the needs of a dynamic and evolving market.
While celebrating our 15th birthday, we’re equally excited to announce the onboarding of nine new major customers, each poised for significant growth. These new partners include leading Lloyd’s syndicates, global insurance organisations, and innovative technology-driven insurance firms – all of whom have recognised the value VIPR brings in streamlining their delegated authority processes.
The U.S. MGA market, sized at $102 billion in 2023, including Lloyd’s and estimated unreported market segments, underscores the scale at which effective technology solutions are essential. Notably, Lloyd’s cover holders wrote $7.5 billion in premium, representing 9% of the total U.S. MGA market.
The MGA sector has been experiencing double-digit premium growth for the last three years, a trend expected to continue. Furthermore, 89% of insurers surveyed indicated they are expanding their use of MGAs, attracted by opportunities in specialty lines and accessible business through MGA distribution.
Our latest partnerships further solidify VIPR’s position as a leader in the insurance technology space. With an additional 200,000 bordereaux per year now running through our flagship Intrali platform, bringing the total number of bordereaux to over 500,000, VIPR is enabling these industry giants to achieve greater efficiency and accuracy in their data management.
Moreover, 2024 has seen us triple our presence at US conferences, playing a prominent role in major UK events such as Insurtech Insights London and the MGAA Annual Conference. These engagements have emphasised the importance of collaboration, commitment and partnerships, with VIPR positioned at the heart of these industry conversations.
The rise of fronting companies, which grew by 27% in 2023 in the United States, with premium volumes reaching over $15 billion, further illustrates the increase in this sector. Now accounting for 20% of U.S. MGA premiums (excluding crop insurance), fronting companies have ceded over $11 billion in premium to reinsurance markets, involving over 200 reinsurers.
This symbiotic relationship between MGAs and fronting companies highlights the need for specialised technology solutions that can manage complex interactions and data flows efficiently. To support this rapid growth, VIPR has made several strategic hires, including a new IT Operations Manager, a Chief Revenue Officer, and a Global Head of Customer Success over the first 6 months of 2024.
These additions are set to enhance our ability to deliver world-class service and continue our trajectory of success. As we look forward to the remainder of 2024, VIPR is excited about the opportunities ahead, including speaking engagements, additional strategic partnerships, and further expansion into key markets.