Experts Identified Regulatory Hurdles for European MGAs
Panelists at the MGA Summit in Paris highlighted how fragmented rules across borders impede growth for underwriting agencies.
Updated on Sept. 29, 2026 in Financial Services
Live Poll
Should governments unify business regulations to make it easier for companies to operate internationally?
Industry leaders at the MGA Summit in Paris revealed that inconsistent regulatory definitions are creating significant barriers to growth. European underwriting agencies currently face a patchwork of differing reporting requirements that stall cross-border operations.
Why it matters
Conflicting rules across different countries force companies to navigate unique compliance hurdles that discourage expansion. These bottlenecks limit the efficiency of the MGA market and complicate business operations for firms working across borders.
Setting up an MGA takes just one day in Germany, whereas the process requires six months in the Netherlands. These discrepancies in reporting and regulatory requirements create significant administrative bottlenecks for firms.
The players
UK Financial Conduct Authority
This is the conduct regulator for financial service firms and financial markets in the United Kingdom.
The details
Regulators in some jurisdictions currently oversee MGAs as brokers, leading to increased scrutiny regarding potential conflicts of interest. Specifically, the UK Financial Conduct Authority monitors firms that manage both brokerage and underwriting platforms to ensure they are not steering business to increase earnings.
Timeline
September 29, 2026: The MGA Summit took place in Paris.
Market Landscape
The current regulatory fragmentation across Europe stands in direct contrast to the integration goals of the European Union's Single Market financial services directives. This lack of harmonization forces firms to adapt to distinct jurisdictional standards rather than benefiting from a unified economic block.
Investors and clients may experience higher costs as firms pass on the expenses associated with navigating complex, cross-border regulatory compliance. These inefficiencies can limit the availability of specialized insurance products in certain jurisdictions.
The takeaway
Achieving a common definition for underwriting agencies is essential for creating a cohesive European insurance market. Without standardized reporting, the industry will likely continue to face operational delays and increased compliance costs.
Further reading
Learn more about the latest trends in global Financial Services.
Live Poll
Should governments unify business regulations to make it easier for companies to operate internationally?
