See differently. Win differently.
It’s time for MGAs to compete on service, not price – even in a soft market
In a soft market, it’s easy to feel forced into chasing the lowest price. Capacity is plentiful, competition is intense, and a small difference can lose a renewal.
But the FCA is clear: insurance can’t be a race to the bottom anymore. Claims handling and service quality are now squarely in focus for its 2026 priorities. And the regulator isn’t mincing words – too many customers still face poor claims experiences, and firms must prove they deliver when it matters most.
For MGAs, that’s the opportunity.
Price wins a quote. Service wins trust. Consumer Duty demands both.
The FCA is steering the market toward outcomes, not just cover. It expects clear communication, fair and timely claims handling, and evidence that customers genuinely receive the value they were sold.
The challenge? It’s hard to differentiate on paper. Most MGAs say they offer “great” claims service. Yet even strong operations face real-world complexities:
- complex property losses
- BI calculations
- reinstatement delays
- vulnerable customers
- inconsistent third‑party suppliers.
And these are exactly the pressure points where Consumer Duty exposure sits.
Here’s the shift: Stop selling the policy. Start selling the recovery.
SMEs and homeowners don’t buy insurance for the wording. They buy it for the day something goes wrong. And the FCA is doubling down on that moment, with closer scrutiny of claims outcomes and outsourced processes.
Service is now the only sustainable differentiator. Tangible, evidenced, experienced.
This is where Loss Recovery Insurance (LRI) changes the game.
Even with a strong claims operation, LRI adds another layer of customer protection that aligns directly with Consumer Duty.
LRI provides and pays for an expert specialist who works solely for the policyholder to prepare, negotiate, and settle material damage and BI claims, especially the complex ones.
It strengthens outcomes in three clear ways:
- Better support – customers get expert guidance, reducing stress, confusion, and delays.
- Better understanding – complex claims become clearer, exactly what the FCA wants firms to improve.
- Better value – fair value isn’t just about price; it’s about service quality. LRI has been formally assessed as offering fair value under PROD rules.
For MGAs, LRI becomes a strategic differentiator, especially in a soft market
Instead of battling on price, you can centre your proposition on outcomes: “We don’t just insure losses. We help you recover from them – properly.”
Brokers can sell that. Customers remember that. And the FCA expects that.
The market may be soft. But the opportunity is impossible to ignore.
For MGAs looking to stand out, now is the time to shift the conversation, service is the new competitive edge and LRI is one of the simplest ways to strengthen it.