Navigating the Growth of MGAs: What It Means for Agents Today

The insurance marketplace continues to evolve—and one of the most notable shifts in recent years has been the rapid growth of Managing General Agents (MGAs) and Managing General Underwriters (MGUs).

This isn’t just a perception—it’s measurable. In the U.S., premium flowing through MGAs has grown to more than $100 billion annually, representing roughly 9–10% of the total property and casualty market. Over the past five years, MGA premium has increased by nearly 90%, significantly outpacing the broader insurance market. And in 2024 alone, MGA premium grew approximately 15–16%, marking multiple consecutive years of double-digit expansion.

For many agents, this isn’t a theoretical trend. It’s something they’re experiencing in real time. More submissions are being placed through MGAs. More options are available for hard-to-place risks. And in many cases, MGAs are becoming a regular part of the placement strategy.

But as access expands, so does complexity.

Why MGAs Are Gaining Ground

MGAs have been around for decades, but their role in the market has grown significantly. Today, they serve as a critical bridge between agents and specialized underwriting capacity.

Several factors are driving that growth:

• Increased demand for specialized underwriting expertise
• The need for flexibility in pricing and coverage
• A more fragmented risk landscape across industries
• Carrier interest in deploying capital through delegated authority

In short, MGAs allow the market to move faster and go deeper into niche or complex risks.

How Agents Are Using MGAs Today

For most independent agents, MGAs are not replacing traditional carriers—they’re supplementing them.

Typically, MGAs come into play when:

• A risk falls outside standard underwriting appetite
• Loss history complicates placement
• Operations are specialized or difficult to classify

In these situations, MGAs provide access to markets that might otherwise be unavailable.

The experience can feel different as well. Many agents find MGAs to be:

• As responsive as their top carriers
• Transaction-focused
• Flexible in underwriting decisions

That speed and accessibility can be a significant advantage, especially when timing matters.

More Options—But More Responsibility

With that expanded access comes an important shift in the agent’s role.

When working with MGAs, agents often need to take a closer look at:

• Coverage forms and endorsements
• The financial backing behind the program
• Claims handling processes
• Long-term stability at renewal

Unlike traditional carrier relationships, which are often built over years, MGA interactions can be more placement-driven. That doesn’t make them less valuable, but it does require a more deliberate approach.

The reality is this: MGAs expand optionality, but they also increase the need for diligence.

Where MGAs Create Opportunity

For agents, the growth of MGAs brings meaningful advantages.

They can:

• Open doors to new or underserved market segments
• Provide solutions for complex or evolving risks
• Offer speed and flexibility in underwriting
• Help agents compete more effectively in challenging placements

In many cases, MGAs allow agents to say “yes” where they might have previously had to walk away.

Where Agents Need to Be Careful

At the same time, not all MGA solutions are created equal.

Agents should be mindful of:

• Variability in coverage language
• Differences in claims experience
• Program longevity and consistency
• Changes in appetite prior to renewal

These factors don’t always show up at the time of placement—but they matter over the life of the account.

Strong agents understand that placing the business is only part of the equation. Supporting the client over time is what defines the relationship.

The Value of Carrier Partnerships

As the specialty market grows, the role of stable, long-term carrier relationships becomes even more important.

Traditional carrier partnerships offer:

• Consistency in underwriting and service
• Reliable claims outcomes from expert handlers   
• Long-term commitment to underwriting appetite and key industries
• Stronger relationships across underwriting, sales, leadership, and service
• Profit-sharing opportunities  

For many agents, the most effective strategy is not choosing one over the other but understanding how each fits into their broader approach.

MGAs can provide access and flexibility. Carriers provide stability and continuity. Both play a vital role in serving clients well.

Finding the Right Balance

The continued growth of MGAs is a reflection of a changing market—one that demands both specialization and adaptability.

For agents, success comes down to balance:

• Knowing when to leverage specialty markets
• Understanding the trade-offs involved
• Maintaining strong relationships across all partners
• Keeping the client’s long-term outcome at the center of every decision

The market will continue to evolve. New options will emerge. But the fundamentals remain the same.

Clients rely on agents not just for access—but for judgment.

And in a more complex marketplace, that judgment matters more than ever.