UK-based Castel Underwriting announced the launch of a “new club style MGA formation platform that provides experienced and entrepreneurial underwriters with stable capacity and a fast-track route to creating their own businesses.”
The new venture is headed by the former CEO of Wildnet, Mark Birrell. “Castel has been specifically developed to support the ambitions of innovative individuals or teams of underwriters in the London and wider insurance markets with niche and specialist books of business,” the announcement said.
“In return for bringing their skills, knowledge and market contacts to the FCA regulated MGA platform, underwriter members will over a period of time be able to generate a significant stake in their own individual MGA business cell, benefitting from a direct link between their account profitability and personal remuneration.
“Although they will focus on running their own branded MGA cells, members will also be encouraged to work collaboratively with other teams within the Castel club to share knowledge and drive innovation.
“In addition to long-term stable capacity, Castel will deliver effective infrastructure including experienced management, scalable IT systems, creative marketing and the flexible operational framework required to ensure a smooth, efficient and rapid route to market. The implementation of sound regulatory and compliance practices will also enable Castel MGAs to benefit from a strong culture of risk management and corporate governance.
“Whilst all of the MGA cells can continue to be nurtured and grow within Castel for the long-term, if desired, full independence can be achieved through a range of buyout or earn-out arrangements.”
Castel is a wholly independent subsidiary of the Barbican Group.
Birrell commented: “When we began developing the Castel model we kept asking the same question – why would you launch an MGA business alone when you can join forces and share knowledge and ideas with other insurance entrepreneurs? The result was the creation of the Castel collaborative club to make great MGA underwriting cells happen quickly and without stress.”
“Castel will provide all the services resources and regulatory support required to enable underwriters to really focus on trading. Members will also be working alongside other industry experts who can help to smooth out any sticky moments encountered along the way.”
“We certainly believe our club style approach will be extremely attractive to frustrated insurance entrepreneurs and are looking forward to helping bring multiple MGA cell businesses to the market,” he added.
Source: – Castel Underwriting