Behind the Policy: Design Firms

40% revenue growth but premium stays the same. Insane, isn't it?!?

An architect was retained to design a new home for the aged. Early in the project, the client’s board advised that air conditioning was unnecessary and unaffordable. Relying on these verbal instructions, the architect designed the building’s mechanical systems to residential standards.

Later, the client reversed course and requested air conditioning be added. Rather than redesigning the system comprehensively, a minimal cooling solution was layered onto the existing residential-style heating system.

Once operational, the ventilation and cooling system proved grossly inadequate. Residents experienced extreme indoor heat, poor air circulation, and reported health impacts — triggering legal action against the project team.

With no written record of the original client instructions or scope limitations, the architect’s defense was significantly weakened, and the claim was settled by his professional liability insurer.

▶️ Source

YouTube — Claim Stories: A Home Is Not a House
https://www.youtube.com/watch?v=SWRG1z3ykqc

In this episode of Behind the Policy: Design Firms, we break down a recent Canadian Underwriter article examining why brokerages are increasingly acquiring or creating Managing General Agencies (MGAs).

We explore the market forces behind this shift—including capacity constraints, margin pressure, underwriting control, and access to specialty products—and what MGA ownership really means for the insurance ecosystem. More importantly, we discuss how this trend affects carriers, brokers, insureds, and niche sectors like professional liability for architects and engineers.

Is MGA ownership about innovation—or survival?
 And what does it signal about where insurance distribution is heading next?