MGA Strategic Priorities 2024

MGAs play a pivotal role in the insurance distribution value chain, sitting between other intermediaries, such as retail or wholesale brokers and insurers, providing a unique value proposition for all parties. Insurers experience greater flexibility and choice in partnering with MGAs rather than establishing their own dedicated insurance operations for niche business segments. In an AM Best report released on May 22, 2024, it’s noted that direct premiums written (DPW) generated by MGAs grew 8.6% year-over-year to $77 billion in 2023.

The growth in the MGA sector is a recognition of the market opportunity for insurers and reinsurers grow their premium and expand into new markets and geographies, by leveraging MGAs’ strong agent relationships, underwriting expertise from their deep understanding of unique risks, and a new business model and technology foundation that offers greater speed-to-market capabilities. These characteristics are also primary reasons why MGAs are bringing in top talent, from underwriters to technology professionals, and capital from private equity companies for startups.

Read this report to better understand:

• How MGAs use data and analytics and new technology foundations to create innovative and efficient quote-to-bind, underwriting, servicing, and claims business models, for traditional and niche products.
• The contrasts between MGAs’ and insurers’ top-of-mind issues, strategic initiative priorities, and technology foundations, based on the survey results from our insurer strategic priorities survey from earlier this year.
• How MGAs are innovating and creating new digital business models that provide new products and experiences for customers, specifically for those in volatile risk markets.