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The Role of MGAs in the Insurance Value Chain

24th October 2025

The Role of MGAs in the Insurance Value Chain

Managing General Agents (MGAs) play a pivotal role in the distribution chain, serving as a crucial bridge between insurers, reinsurers, carriers, brokers and the market as a whole. Their specialism and innovativeness position them as vital pioneers in the insurance market and enable them to underwrite risk that can’t be easily covered by a traditional insurance firm.

The importance of Managing General Agents in insurance
Why MGAs Matter More Than Ever

As the insurance industry grapples with a complex regulatory environment, MGAs not only facilitate access to specialty insurance products but also ensure compliance with ever-evolving regulations that the FCA and worldwide regulators impose.

Their expertise allows them to navigate counterparty risk effectively, providing insurers with valuable insights and strategies to mitigate potential pitfalls.

This article will explore the multifaceted role of MGAs in the insurance distribution chain, highlighting how they enhance operational efficiency and drive value in an increasingly competitive marketplace. Understanding MGAs’ role is essential for stakeholders and trading partners looking to optimise their position within this dynamic sector.

What is an MGA in insurance
What is an MGA

MGAs, which stand for Managing General Agents, are pivotal players in the insurance landscape. Defined as specialised intermediaries between insurers, agents and retail/wholesale brokers, MGAs possess the authority to underwrite policies, bind coverage, and manage claims on behalf of insurance carriers.

Their role transcends that of traditional brokers; they bring unique expertise and efficiency to the underwriting process, and they’re extensively recognised in the market for being nimble, agile and innovative when it comes to both the products they underwrite and the technology they adopt.

Because MGAs are generally smaller and newer, they often maintain streamlined operations, free from the heavy bureaucracy and complex systems that slow down traditional insurers.

By leveraging their deep understanding of specific markets and risk profiles, they’re able to create tailored insurance solutions that meet the nuanced needs of clients. This not only streamlines operations for insurers but also enhances service delivery for agents seeking specialised products.

In an industry where adaptability is key, understanding the definition and function of MGAs is essential for anyone looking to navigate the complexities of modern insurance effectively from both an operational and compliance perspective.

The MGA market size in the UK, US and the world
The MGA Market and Size

The MGA sector is only set to keep growing over the next few years, and it has been doing so for years due to its agile nature, independence from cumbersome infrastructures and capability to innovate and underwrite new risks.

Their agility in adapting to changing market demands positions them as vital partners for both brokers and capacity providers.

In 2023, research reported that MGAs around the world generated roughly $200 billion in premiums across various insurance classes. From 2018 to 2023, the sector recorded impressive annual growth of more than 20%.

MGAs and insurance statistics and figures worldwide

According to McKinsey’s research, the United Kingdom and the United States lead the world in the development and sophistication of their MGA markets, with many US-based MGAs outsourcing their risks to the London market, particularly to Lloyds syndicates. In fact, studies found that Lloyds market alone has accounted for $102 Billion written premium in 2023.

Moreover, the US market is home to roughly 600 MGAs, which together handle close to $47 billion in premiums – accounting for around 7% of total commercial and personal insurance business.

The Managing General Agents Association (MGAA) research suggests that there are over 300 MGAs that are currently underwriting more than 10% of the UK’s £47 billion general insurance market premiums.

This growth is also reflected in the number of MGAs becoming MGAA members which has increased by 58.5% from 2019 to reach over 233 MGAs by 2024 as reported by Insurance Edge.

The role of MGAs is further reinforced by brokers, with 90% considering MGAs as valuable and approximately 50% going to MGAs first for non-standard risks, according to Insurance Times.

These figures are a clear sign that proves how the MGA landscape is thriving — evolving from its early growth phase into a more established, professionally driven market.

As Gary Head, Chief Underwriting Officer at Optio said at a recent InsureTV-hosted panel: “I think the MGA segment is the premier league of the insurance industry.” He added that: “MGAs have gotten much better – both their technological capabilities but also their ability to deliver valued products for customers that give expected outcomes.”

The role of MGAs in the insurance value chain
The role of MGAs in the Insurance Distribution Value Chain

MGAs play an irreplaceable role in the insurance value distribution chain and bridges the gap between insurance companies, carriers and wholesale/retail brokers by being positioned in the middle of these insurance players.

They tend to underwrite very niche, complex and unusual risks, notably from cyber risk and pet insurance to casinos, commercial trucking, property and casualty, construction, art and much more. Their expertise transcends that of mere products and also covers geographical regions.

The MGA model offers unique value and benefits from being more dynamic and innovative, making use of the latest technology to maintain leaner and direct operations as they tend to be smaller and less structurally complex than behemoth insurance carriers and firms (Mckinsey & Co).

Furthermore, MGAs’ entrepreneurial spirit and ability to embed technology in every aspect of their operations makes them more efficient and prone to obtain private capital from investors and insurers as reported by Deloitte’s 2025 Global Insurance Report.

The insurance value chain

With MGAs playing a central role in the insurance value chain, they hold the accountability to conduct due diligence checks on their counterparties and ensure their partners operate with a consumer-first approach – adhering to the FCA’s Consumer Duty and Fair Value laws which came into force on July 31st 2023.

MGAs’ Role in Supporting Insurance Firms/Carriers

From an insurance distribution chain perspective, MGAs work directly with carriers, delivering top-notch underwriting precision. McKinsey also emphasises how easy it is for carriers to delegate authority to MGAs and penetrate new markets without hiring an entire underwriting team or alternative pricing strategies, which could become costly and complex.

Also, MGAs’ success depends on the reputation they build in their niche offerings, which becomes a crucial part of the carrier’s distribution chain (REG Technologies).

According to Michael Keating, CEO of the MGAA: “The amount of risk an MGA can take on behalf of an insurer remains the dominant pillar and critical factor in the sector’s sustainability. The continued growth of MGAs demonstrates that capacity providers recognise the value MGAs bring, most notably in underwriting expertise in niche and specialist markets where traditional insurers may lack the knowledge or access to specific distribution channels.”

Quote from regional schemes underwriting manager at AXA Tamsin Harrison around the importance of working with MGAs

In a recent panel session in collaboration with InsureTV, Regional Schemes Underwriting Manager at AXA, Tamsin Harrison said that: “Working with MGAs allows us to partner with experts that actually know things that we don’t, so we’re quite happy to admit that they have expertise which has allowed us to enter segments such as after-the-event legal expenses, cyber… and we don’t write them anywhere else, we only write them with MGAs.”

She emphasises that: “It is about trying to make sure that we’re working with the right MGAs that have the right philosophy and are agile enough to deal with the market.” She also states the importance of being innovative, diversifying product offerings and make customers more sticky as some of the most pivotal factors when picking the right MGAs to work with.

Because of the trust and transparency that MGAs benefit from in the insurance market, and thanks to their expertise and the way they leverage technology, the latter are able to maximise their relationship with capacity providers and therefore seamlessly distribute the end product to policyholders which reduces friction and negative experiences.

Managing general agents webinar in partnership with InsureTV
The Importance of MGAs in Providing a Positive Experience to the End Policyholders

While MGAs don’t work directly with policyholders, their relationship with insurance carriers, reinsurers and brokers define customer experience success. Their important role in the distribution chain cannot be stressed enough, as it’s a crucial aspect of making sure policyholders are happy and protected in case they make a claim.

MGAs’ ability to underwrite niche products also solves for cover gaps and particular customer pain points. Some potential policyholders might want to insure an uncommon product which only MGAs that specialise in that specific area can underwrite, therefore reducing friction, maximising convenience and personalising the experience to the unique customer needs.

Embracing technology is a key enabler in driving positive customer experience, and when speaking at the recent Insure TV panel event, head of Sales at REG Technologies, Victoria Slade emphasised “MGAs must embrace technology, get it in place, and ensure they’ve got the right processes, the right controls, and then they can put their best people forward.”

Quote from Victoria Slade head of sales at REG around the importance of embracing technology
MGAs role with brokers
MGAs’ Role with Brokers

MGAs sit right on top of brokers in the insurance value chain, and typically distribute the products they underwrite to brokers or other insurance intermediaries so they then offer to insureds.

MGAs’ knowledge in their niche areas supports brokers design well-structured risk solutions for the end policyholder (McKinsey).

Moreover, Corin underwriting’s research found that 62% of brokers they surveyed find it extremely important for MGAs to offer them tailored products for industries like scaffolding, waste and roofing as reported by Insurance Times.

Importantly, MGAs have also the responsibility to conduct regulatory checks on the brokers they work with and ensure they maintain oversight at all times. Regulatory scrutiny by the FCA and other watchdogs in only increasing – calling for MGAs to take control of the regulatory landscape they operate in by becoming an innovative leader, as Michael Keating puts it at the InsureTV MGA masterclass.

MGAs value the relationships they build with brokers while offering them the specialism and expertise that differentiates them in the insurance market.

Insurance Times emphasizes MGAs’ capacity to provide top-notch services and claims management to brokers as a key factor in the positive relationships they’re able to build.

REG Technologies announces silver sponsorship of the MGAA
REG Technologies and MGAA’s role in Supporting MGAs Deliver Superior Value

Founded in 2011, the Managing General Agents Association is a non-for profit organisation whose role is to support, develop and educate the MGA market and members in the UK and Ireland.

The MGAA has been playing a significant role in enhancing MGAs’ authority in the insurance market and helping them deliver superior value in the distribution chain. And it does this through events, conferences, mentorships, and educating the market around the FCA’s regulatory updates, ensuring MGAs are always up-to-date and equipped with the right tools to navigate the complex regulatory environment.

Part of the MGAA’s vision is to “elevate the status of MGAs, ensuring they are recognised as integral components of the distribution chain.”

By recently becoming Silver Sponsors of the MGAA, REG Technologies is also dedicated to supporting the MGA market and the MGAA members operate in a seamless and compliant manner.

The REG Network in particular – a safe, cloud-based software developed to simplify and expedite MGAs’ agency management operations and help them operate seamlessly in the insurance value chain from supporting with TOBAs and documentation processes to monitoring trading partners and ensure absolute regulatory adherence.

MGAA member bundle offered by REG Technologies
MGAs and the Regulatory Landscape

MGAs are responsible for making sure brokers or the other counterparties they monitor are compliant throughout the insurance lifecycle process – from recommending a policy to a customer and collecting premiums to handling claims.

At the end of the day, protecting the end policyholder and acting in their best interest is crucial and will spare MGAs and all insurance parties from being fined or reputationally damaged.

Despite being early adopters of technology, many MGAs still struggle with meeting the FCA’s regulatory requirements due to using slow manual processes which ultimately affects the number of partners the latter works with.

Moreover, fair value assessments have been introduced to particularly ensure MGAs, insurers and brokers are pricing their products reasonably in line with the benefits it delivers to meet good customer outcomes.

Therefore, exchanging Terms of Business Agreements (TOBAs), conducting fair value assessments and adhering to Consumer Duty principles without leveraging the help of a specialised provider can be daunting and fragmented and ultimately impact customers’ experience and satisfaction.

The REG Network automates and facilitates these due diligence processes and has proved beneficial for many MGAs already in different ways.

Generis Underwriting, a customer of REG has leveraged the REG Network to speed up many of their legacy processes to seamlessly onboard new brokers. They also benefit from a unified counterparty data dashboard which has helped them eliminate data siloes and expedite crucial business decisions.

Gary Head praises REG as a key platform for ensuring that Optio is compliant at all time: “The REG platform, which we use, is a fantastic example there of how you can leverage technology to simplify the compliance process.”

MGAs need to continue embracing technology and position themselves as “regulatory trailblazers” to maintain their attractive and transparent position to potential partners.

MGAs insurance conclusion
Final Thoughts

The role that MGAs play in the insurance sector is of paramount importance and cannot be overlooked. Their responsibilities continue to grow, not only due to their expertise in highly specialised and unique products, but also because of the increasing regulatory burden.

RegTech will continue to shape the MGA model and will enable MGAs to establish themselves as trustworthy partners that deliver value to all intermediaries and customers.

As the MGA sector continues to grow worldwide, so will the technologies that will enable MGAs to keep gaining a competitive edge in this dynamic marketplace.

Learn how REG Technologies supports MGAs streamline their regulatory processes and increase operational efficiency.

This article was published by:

Article author:

Picture of Manal Tjiou, Marketing Executive at REG Technologies
Manal Tjiou

Manal Tjiou is the Marketing Executive at REG Technologies. With a passion for digital marketing and creative strategy, she’s commited to increasing our brand awareness and thought leadership in the industry, ensuring our content resonates well with our audience.

020 3946 2880

info@reg.uk.com

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