A strong Canada needs strong Canadian MGAs

Open any news source, and the key messages are consistent. Canada is focused on exporting more of our vast natural resources to new markets; building major infrastructure projects across the country (often in challenging geographic environments); strengthening our digital sovereignty and protecting ourselves from new and emerging technologies and building greater self-sufficiency in medical and pharmaceutical production. The list goes on.

“All of these projects come with risk. And before a project can be financed, construction can begin, or an investment can be made, those risks need to be understood, managed and, where appropriate, transferred. Insurance is the financial infrastructure underneath that which we are trying to build. As Canada takes on increasingly complex projects, the risks become increasingly specialized,” said Pete Tessier, President of the Canadian Association of Managing General Agents (CAMGA).

Read more: MGAs are growing fast - understanding of them isn't keeping pace

Enter MGAs. MGAs are the dominant insurance solutions available that Canada needs to build what the country is demanding. Coverage for environmental, transportation, marine, energy, construction, cyber/privacy/technology/media, and large/complex property and casualty are risks written within this group.

A role for MGAs, a role for regulators, and a role for CAMGA

“MGAs will bring the specialized underwriting expertise and access to capacity for these Canadian ambitions, the ones that don't always fit neatly within traditional insurance models,” Tessier added.

There’s also a big role for regulators to play in assisting in this support for MGA strength. The industry discussion about MGA oversight in Canada is ongoing, with a core question from CAMGA members being about how regulation varies province to province. (For a handy chart of the Canadian provinces' oversight for MGAs, view page 43 from CAMGA’s white paper on the topic.) This provincial regulatory variation is a governance challenge for MGA firms, creating fragmentation, especially as MGA risks expand across provinces and become more complex.

And for CAMGA, there is a role for us to play to continue to work as an advocate and efficient access point to these insurance professionals.

“We view CAMGA’s role as a collaborator in our ask for a provincially consistent MGA oversight approach. A role for us to identify opportunities to enhance efficiencies,” Tessier said.

Read more: What exactly is an MGA in Canada?

When we talk about Canada's ability to build, we also need to talk about Canada's ability to insure what we build.

Prime Minister Mark Carney said: “Canada has what the world wants.”

CAMGA would add: MGAs have the insurance solutions Canada needs to make it happen.