MGAs ‘taking growing share of underwriting’ as insurer demand increases

MGAs are taking a “growing share of underwriting” as insurers are increasingly relying on them for specialist expertise.

That is according to Andrea Bertolini, head of financial services at Inflexion, who told Insurance Times that insurers would rather rely on MGAs for specialist expertise than underwrite these risks directly. 

According to 2024 figures published by trade body the Managing General Agents’ Association (MGAA), there are over 300 UK-based MGAs in operation in the general insurance industry.

These firms underwrite roughly 10% of the £47bn total premiums collected by this marketplace.

Bertolini said that ”many MGAs have now demonstrated that they can grow profitably through both soft and hard market cycles, proving the resilience of the model and giving investors greater confidence in its scalability and durability”.

He added: ”MGAs are taking a growing share of underwriting, with insurers increasingly relying on them for specialist expertise and access to niche or under served risks, rather than underwriting directly.

“At the same time, a new generation of MGA platforms and consolidators is emerging, offering meritocratic economics, real equity participation and entrepreneurial autonomy, which attracts high quality underwriting and distribution talent away from traditional carriers and brokers.”

Insurance value chain

Bertolini also highlighted that the ”use of MGAs in the insurance value chain continues to deepen, with carriers increasingly viewing them as strategic partners for accessing specialist segments and deploying capacity more efficiently”.

”The market remains highly fragmented, creating a significant opportunity to build scaled platforms that consolidate attractive MGAs while preserving entrepreneurialism, local decision making and specialist focus,” Bertolini added.

“There is a visible outflow of senior underwriting, product and distribution talent from large insurers and brokers into focused MGAs that offer equity alignment, faster decision making and a clearer link between performance and reward.

”Private equity is playing a central role in this next phase, providing capital and know how to professionalise governance, build scalable infrastructure, support M&A and enable these platforms to accelerate growth without losing the entrepreneurial culture that underpins their success.”