Lloyd’s has welcomed the launch of the newly formed Managing General Agents Association (MGAA), saying it will give the sector a much-needed voice.

Managing general agents (MGAs) currently generate about 30% of the market’s premiums and Lloyd’s Regional Manager for the UK and Ireland, Keith Stern, says the new association will help address the specific needs of the sector.

An MGA, also known as a coverholder, offers property, liability and speciality products to individuals and companies.

But although an estimated 10% of all non-life premiums in the UK are generated through MGAs and other delegated authorities, most regulators, brokers and insurers don’t understand the agents’ role in the market.

Mr Stern, who served as Lloyd’s Representative in Australia from 2000 until last year, says regulators and the industry “need to better understand the specific role of the independent MGA and how they differ from insurers and intermediaries like brokers”.

The MGAA already has more than 40 members and plans to launch a website in January to help highlight the role of MGAs in the industry while also providing a platform to build an online community.