Managing general agents (MGAs) have become one of the most agile and responsive forces in the U.S. insurance sector. They aren't new, but recently they've exploded in popularity. They bring specialization, speed, and flexibility to the underwriting process, allowing them to meet evolving market demands in areas where traditional carriers are scaling back, especially in E&S and complex risk segments.
The model is working.
MGAs see rapid growth as coverage expands
The operational lift behind an MGA's growth can be substantial. Managing claims funds across partners and jurisdictions, meeting regulatory requirements, integrating with TPAs, brokers, and reinsurers all require discipline and visibility. The challenge is that many MGAs are working with financial systems that aren't built for this kind of scale or interconnectedness.
Elsewhere, other infrastructure shortcomings can hinder the growth of MGAs. These include the inability to link computing platforms with those of business partners, such as carriers and brokers. Additionally, the inflexibility of policy administration systems can create bottlenecks and necessitate manual interventions, including data rekeying. It's this disconnection of claims and treasury functions, which can affect liquidity, leading to funds being in the wrong place at the wrong time. This isn't a shortcoming of the MGA model. Rather, it reflects how quickly the space has grown, and how the infrastructure supporting it hasn't always kept pace.
Technology strategies for a better path forward
MGAs have an opportunity to make different choices. While larger incumbents often wrestle with legacy tech complexities, MGAs can move faster and smarter.
Technology has an enormous role to play in allowing small businesses to achieve benchmarks in these areas. Modern financial infrastructure enables faster reconciliation, better visibility over cash positions, and stronger oversight of how funds move across every partner, geography, and claim cycle. These improvements reduce friction, lower risk, and free up teams to focus on growth, not administration.
What scalable infrastructure looks like
To support long-term success, MGAs need financial systems that:
- Centralize claims and treasury operations across their ecosystem
- Enable real-time fund movement and visibility
- Include compliance workflows by design
- Connect seamlessly to the partners and platforms that drive their business
These capabilities are essential for operating at scale in a global, regulated environment. Without these foundations, even the best underwriting expertise can't sustain growth. As the MGA space matures, those that invest in scalable infrastructure will be best positioned to lead the next chapter.
The MGA space has shown what's possible when you move with focus and speed. As the next chapter unfolds, the firms that prioritize operational resilience and financial infrastructure will be positioned to lead, because they'll be ready to scale with confidence.
