A managing general agent (MGA) is defined as an entity that underwrites business on behalf of a capacity provider. The Managing General Agents' Association estimates the current number of MGAs operating in the UK to be over 300. MGAs have moved into the spotlight in recent years, increasing in number and popularity due to suitable market conditions.
Ensure your strategy is adapted to maximize the benefits of outsourcing to MGAs.
Gain insight into the different MGA types and leverage their strengths to your advantage.
Analyze the MGA market with data on offered product lines, capacity providers, and year of launch.
Examine the issues affecting the MGA market and how they will influence future growth in this space.
Which lines of insurance are MGAs predominantly active in?
What are the major benefits of outsourcing to MGAs for insurers and brokers?
What are some of the key issues shaping the MGA market, and how can they be resolved?
What will be the deciding factors affecting growth in the MGA market in the years to come?
MGAs play various roles in the insurance market, with some specializing on particular product lines while others offer a broader range of products within the general market. Those with the right business models are well-placed to fill in gaps created by insurers exiting high risk areas in a bid to improve profitability.
Specialist MGAs are often focused on specific insurance lines and niche markets, and have accumulated the underwriting expertise necessary to do business in these areas.
Generalist MGAs' key benefit to insurers is that of enabling access to hard to reach markets, while brokers gain from a potentially wider range of products and higher responsiveness.