The insurance market is evolving – and so too is the role of governance within it.
In a recent announcement, the Managing General Agents’ Association (MGAA) welcomed the launch of REG Risk 365, a new module from REG Technologies designed to strengthen counterparty oversight across the distribution chain. While product launches are nothing new, the response from the MGAA and the wider industry signals something more significant: a shift in how the market is thinking about risk.
Across the delegated authority market, expectations around oversight are rising rapidly. As highlighted in coverage from Insurance Business, firms are navigating a more complex environment shaped by regulatory scrutiny, geopolitical uncertainty, and increasing operational demands.
Crucially, this shift is being driven not only by regulators but also by market bodies such as Lloyd’s, which are placing greater emphasis on transparency, auditability, and ongoing oversight.
The Insurance Business article points to a growing expectation for firms to demonstrate:
clear and structured management information
robust audit trails across decision-making
defined and actively managed risk appetites
This is particularly relevant in delegated authority models, where oversight of third parties is fundamental. Regulators and capacity providers are no longer satisfied with point-in-time checks, they want to see how risk is monitored, measured, and managed continuously.
At the same time, commercial pressures haven’t eased. Firms are still looking to grow, onboard new partners, and expand into new markets. The challenge is balancing that growth with increasingly stringent governance requirements.
It’s within this context that REG Risk 365 has entered the market.
As noted in both the MGAA announcement and wider coverage from Reinsurance News and Insurance Edge, the platform has been developed to help firms move away from manual processes and spreadsheet-based tracking, approaches that are becoming increasingly difficult to defend in a real-time risk environment.
Instead, REG Risk 365 enables insurers and MGAs to embed structured, configurable counterparty risk assessments directly into their workflows. Supported by live regulatory and compliance intelligence, the platform allows firms to build frameworks that are not only consistent and auditable, but also aligned to their own risk appetite.
This includes the ability to:
define and weight bespoke risk criteria
combine internal judgement with external data sources
generate outputs aligned to governance thresholds
continuously monitor counterparties for changes, from sanctions updates to adverse media
The shift here is subtle but important. It’s not just about digitising existing processes, it’s about rethinking how risk is managed altogether.
The MGAA’s endorsement reflects the importance of this shift at a market level.
CEO Mike Keating emphasised that while the delegated authority market remains in a strong position, its continued growth depends on the ability to demonstrate effective governance: “The delegated authority market is in a strong position, but sustainable growth depends on robust and demonstrable governance. Counterparty oversight is central to regulatory confidence and capacity relationships.”
He also highlighted the role that structured, technology-enabled solutions can play in supporting this: “Platform solutions that support structured, consistent and auditable risk assessment will play an important role in reinforcing standards across the MGA community and critically remove frictional and unnecessary costs…”
This dual focus, strengthening oversight while reducing operational burden, is becoming a key priority across the market.
Alongside external pressure, there is also a shift happening internally within firms.
As Zoë Parsons, Head of Marketing at REG Technologies, explains: “Counterparty risk is no longer a back-office compliance task. It is a strategic governance priority.”
She adds: “As regulatory expectations intensify, risk frameworks must be active and continuously monitored, not revisited once a year.”
This reflects a broader evolution in mindset. Risk is no longer something reviewed annually or managed in isolation, it is increasingly embedded into day-to-day decision-making, influencing who firms partner with, how they grow, and how they maintain confidence across the distribution chain.
Taken together, the MGAA’s backing and the wider industry coverage point to a clear direction of travel.
Governance is becoming more structured, oversight is becoming continuous, and the tools used to manage risk are evolving accordingly.
For firms operating in the delegated authority space, the implication is clear: traditional approaches are being outpaced by new expectations.
The question is no longer whether governance frameworks need to evolve, but how quickly firms can adapt to meet the demands of a more complex, more scrutinised market.
Learn more about REG Risk 365
