A conversation with Barry O’Dwyer – Shaping the MGA landscape in Ireland

This month, we caught up with our Managing Director, Barry O’Dwyer to discuss the MGA (Managing General Agent) industry in Ireland, how far we’ve come, and where he sees the industry heading. 

Tell us a little about yourself and your journey within the insurance/MGA industry so far:

Originally from Kerry, I went to UCC and then Dublin to study law in the Kings Inns. I started my working life at the same time, in Hibernian Insurance, where my father had worked.
It was never the plan to stay too long, but like many before me and since, I got sucked into the world of insurance. I was very fortunate in Hibernian to have gained a great breadth of experience from various underwriting roles to marketing, claims, strategy, sales and branch management, cumulatively providing me with a very rounded insurance education, and a fantastic network of insurance professionals, many of whom I meet regularly, now scattered across the industry.
I then moved to Chubb, where I spent a further 10 years in various  roles, primarily focusing on the High-Net-Worth  market. I learned the real value of a well-run, specialist insurance business and the added value, and business opportunity, that such a niche focus can bring to the market. 
This in turn led me to DUAL in 2015. I had a strong desire to set up a business, to build, shape and drive a strategy, with relative independence, and to see how far we could bring it. Starting with no customers and no brokers was a daunting experience, but definitely character building! Now, almost another 10 years into my insurance life, at DUAL we have a fantastic, thriving business, with multiple specialist products, run by the very best people. 

How do you feel the MGA industry has changed since starting DUAL here in Ireland in 2016?  

When I started DUAL, the MGA landscape in Ireland was very different. The number of MGAs was small, and in some cases, their lifespans were short, with some looking to make quick money in a specific market segment with too short a focus. I understood early on that we would only ever achieve real success and sustainability, by playing the long game – build a quality book of business always focusing on our three key stakeholders – our brokers/customers, our own team of experts, and our insurer partners. The two key changes over the last 10 years have centred around talent acquisition and capacity.

In 2016, MGAs found it more challenging to attract the best market talent, where traditional larger insurance companies were perceived as a ‘safer bet’ for your career. Over the years however, there has been a significant shift in how talent perceives the MGA market. The breadth of opportunity has also increased exponentially – both in terms of product markets and the levels of roles involved. The best MGA’s offer an entrepreneurial environment focused on the ‘why not’ rather than the ‘why’. MGAs should be agile and ever-responsive to the fast-evolving modern insurance market. This is being reflected in our talent acquisition. Our dynamic culture is now attracting the best available talent, who are looking for a more exciting working environment in which they can have more control and responsibility than ever before.

The immature MGA market of 2016 also saw significantly less available capacity, particularly in Ireland. Only a very small number of insurers supported any MGA business, however, this has changed significantly over the years. Now, many local insurers are investing heavily in MGA development, with a large number seeing MGA business as a core distribution channel and a key strategy in their book diversification. Critically of course, MGAs have a very strong reputation in delivering above-average underwriting results, one of our key USPs, and as more insurers see their results improving, this success will drive the growth of the overall MGA market.

What do you feel helps drive successful growth in this space? 

Great question and the one I spend most of my time trying to perfect the answer to. The following are a number of key ingredients for a successful MGA:

-    Building a strong team – attracting not only the best underwriting talent in their respective area, but the right person, with the right attitude, is key. Empowered people, not afraid to make decisions. We want people with an entrepreneurial spirit, who are vested in the success of their business.
-    Relationships – we have no business without our key partners – our brokers and our insurer capacity. We all have skin in the game and should always be driven by the same goals. By choosing the best and most aligned partners, we can then efficiently and effectively play our role in the MGA value chain.
-    Focus – be clear on what your value proposition is. Don’t try and do everything. DUAL will never necessarily be the biggest or provide the widest choice of products, but in those areas that we specialise in, we will absolutely strive to be the best and  add the most value to our partners. 
-    Being a Great Place to Work – more than just achieving this official status, having a happy team who truly value their workplace, has always been a key priority for me. It’s not just about attracting the best talent, it’s about keeping them and facilitating their development and growth. Our latest CSR initiative, as part of our Group-wide ‘Group Global Giving Month’ sees us all embark on a step-challenge for May, to raise funds for our charity partner, and with some meetings now taking place on foot, rather than in the office!  

Do you see the MGA market expanding here in Ireland? 

Yes, without doubt. As mentioned above, the MGA landscape in Ireland has changed significantly since 2016, with that change accelerating more in recent years. I don’t see this pace of change slowing down.

A number of factors will drive this expanding market:

-    Capacity – as more insurer capacity becomes available, driven primarily by both the strong returns being achieved as well as the diversified distribution strategy, MGAs such as DUAL will constantly evolve (and grow) in partnership with, and aligned with, relevant opportunities.
-    Opportunity – Ireland remains a relatively under-developed MGA market with huge potential for growth. The strong talent pool, our position in Europe as well as being very close to our UK market colleagues (and post-Brexit), gives Ireland enviable potential to grow significantly in the coming years.
-    Talent acquisition – as long as the MGA market can attract industry-leading talent, this key ingredient to success will drive the development of our business.

DUAL, as a Group, has grown exponentially in recent years – in the US, Asia PAC, the UK and most notably in Europe. DUAL Europe plans to be a €1b+ business in the next few years and DUAL Ireland will continue to play our part throughout this exciting period of development. We are both learning from and leveraging DUAL’s international growth to underscore our own growth plans in Ireland.

We’ve come a  long way from the humble DUAL Ireland beginnings of nearly 10 years ago, but all the hard work has been more than worth it. We’ve successfully brought the business to a great place, and we are now very excited about the next leg of our journey and sharing this with our supporters and partners, both old and new.

For more information on specialist underwriting solutions, speak to DUAL.