’This year’s report reflects a sector that remains dynamic and forward-looking, even as it faces mounting pressure from both economic volatility and regulatory scrutiny,’ says partner

Over half of carriers (57%) are expecting to increase their MGA capacity over the next two years with specialty lines (29%), financial lines (20%) and property (17%) among the top areas where carriers expect to provide capacity in 2025.

That was according to Clyde and Co’s 2025 MGA Opinion Report, published on 3 July 2025, which was produced in collaboration with the Managing General Agents’ Association (MGAA) to canvass the views of carriers and MGAs from across the market. 

The report reveals that carriers increasingly view MGAs as essential partners and are valued for their ability to respond quickly to market demands, underwrite specialist risks and bring agility to complex and evolving industry environments.

Nearly three-quarters (74%) were reported not to have reduced their deployment of capacity despite rising capital costs, underscoring the strategic importance of MGAs in helping insurers adapt to evolving market conditions.

Mike Keating, chief executive at the MGAA, said: “This report confirms what we’re seeing across the market –  MGAs are now integral to the insurance value chain.

”Far from being solely a niche channel, they drive product innovation, accelerate digital transformation and provide carriers with the specialist insight needed to navigate today’s complex risk landscape. As trusted partners, MGAs are well-placed to help insurers adapt, grow and deliver greater customer value in a rapidly evolving environment.”

Meanwhile, the positive outlook around the benefits and value of emerging technologies continues to grow, with 65% of MGAs and 66% of carriers believing AI will play a supportive role in improving decision-making and operational performance.

“The report also explores emerging growth areas such as parametric insurance, climate risk solutions and expansion into underdeveloped European markets,” Keating added. 

”With growing investment in AI and data, MGAs are increasingly differentiated by their ability to deliver tailored, tech-enabled insurance solutions.”

Key challenges persist

Despite industry-wide optimism at a maturing MGA sector, dissatisfaction with the claims process over previous years has escalated, with 77% of MGAs reporting the claims process needs improvement – up sharply from 59% in the 2023 MGA Opinion Report. 

This view is even more pronounced among carriers, with 91% acknowledging the need for clearer, faster and more customer-focused handling.

With broader economic uncertainty also adding pressure, over half of MGAs (54%) and 69% of carriers report a negative impact on business from current market conditions. 

It comes as less of a surprise that regulation is still seen as a major constraint on growth, with nearly half of MGAs (46%) and a third of carriers (34%) citing regulatory demands – particularly around Consumer Duty and Fair Value – as the biggest barriers to MGAs entering new markets or launching new products.

Rob Crossingham, partner at Clyde and Co, said: “This year’s report reflects a sector that remains dynamic and forward-looking, even as it faces mounting pressure from both economic volatility and regulatory scrutiny.

“MGAs continue to stand out for their ability to adapt, innovate and deliver specialist solutions in a market that demands speed, precision and resilience.”