As the insurance landscape evolves in 2025, managing general agents (MGAs) are presented with transformative opportunities to capture business in new markets. In this article, we will outline growing markets such as cyber, renewable energy, space exploration, cyber security, cryptocurrency, and other digital assets as suggested avenues for MGAs to introduce new lines of business.
While there’s plenty of opportunity for MGAs in these emerging markets, it should be noted each market has its own set of unique challenges as well. However, forming strategic partnerships with InsurTech companies and industry specialists can enhance a MGA's go-to-market strategy. These collaborations facilitate new insights, specialized knowledge, and industry innovation crucial for MGAs to successfully expand their businesses through new product lines.
Identifying emerging industries
Understanding key emerging markets will help in making strategic decisions on whether any of these markets are a promising endeavor for your business. Below we breakdown each market, examining reasons why each sector may be a good fit for your expansion strategy.
Renewable energy
The renewable energy sector continues to grow rapidly due to increased demand for sustainable power sources and global plans of a net-zero future. Innovations in solar, wind, and hydroelectric technologies alongside many governments implementing policies to support green energy projects, are driving the transition that’s providing fertile ground for MGAs.
As the need for cleaner energy escalates, so does the complexity of renewable energy projects. Multiple technologies and components are needed to complete these projects, which increases risk and difficulty to insure. Potential risks include weather damage, equipment failure, business interruption, liability, and more. Collaborations and partnerships within this sector have promises of significant, long-term returns. In 2023, the renewable energy market was valued at $11.6 billion and is projected to reach $25.3 billion by 2032.
Space exploration initiatives
Space exploration is no longer limited to governmental agencies. Private enterprises are driving the push beyond Earth's atmosphere, leading to technological innovations and new business models. Initiatives range from satellite deployment to ambitious projects like Mars colonization.
These developments create potential for MGAs to explore markets related to aerospace engineering, space tourism, and satellite communications. Collaborating with key players in this sphere may unlock unique opportunities for innovation, growth, and development.
The need for space insurance may seem like light years away but this market has already taken off. For example, market leader AXA XL offers insurance for small space satellites and launch vehicles. But as the sector continues to grow, so does the need for coverage. Launch insurance, in-orbit insurance, and cargo insurance are all areas of the space tourism market to explore for opportunities.
By 2030, the global market for space tourism is expected to exceed $6 billion.
Cyber security
Meeting global standards and adapting to evolving cybersecurity regulations are crucial for MGAs seeking new market opportunities. For example, a new MGA, Euclid Cyber, is focusing their business on large revenue stream companies, who are particularly susceptible to cyber threats like ransomware attacks and data breaches. As people continue to rely heavily on technology and AI, the need for cyber risk underwriting will also continue to expand.
Another hurdle with the cyber market is understanding how to price it. Since cyber risk is still an emerging market, there is a lack of historical underwriting data for carriers to use to properly price that risk. This gives MGAs the chance to take the lead over what the market turns into as it continues to take shape. And we’ve yet to see the full potential of this market’s worth. According to Security.org, the global cyber insurance market was worth $13 billion in 2023. In 2025, they expect the market value to grow to $22.5 billion.
Crypto and digital assets
Insurance covering crypto and other digital assets goes hand in hand with the cyber security market growth. Digital assets are constantly subjected to cyber-attacks but despite this, it is predicted that 70% of Americans will hold some kind of crypto currency–the same adoption rate as credit cards. The last two years have seen a significant growth in players within the crypto and digital asset insurance field. Even though regulations are continually developing and changing, there’s an opportunity to develop a sustainable book of business.
As it stands, there is only about 11% of the world’s crypto holders that have an insurance policy, which pales in comparison to the 68% who have stated they would either purchase a policy if it was offered to them or are, at the very least, open to the idea of having coverage.
However, the number of insured crypto holders is likely to rise as the number of violent physical attacks and robberies of those holders continues to increase as well. These “wrench attacks” have been on the rise since 2023, specifically against people owning Bitcoin and other cryptocurrency: 18 reported attacks in 2023, 24 reported attacks in 2024, and 8 reported attacks in January this year alone.
Becca Rubenfeld, a former Starbucks executive, co-founded her startup AnchorWatch to help Bitcoin owners store and insure their digital assets. This past November, AnchorWatch succeeded in convincing Lloyd’s of London to include wrench attacks in the policy AnchorWatch offers customers. The policies start at an annual fee of 0.55% of the Bitcoin they want to protect and include coverage in the event of a violent Bitcoin robbery.
Leveraging technology to enter new markets
To successfully and efficiently enter new markets, MGAs will need to leverage technology and data analytic tools that were built to enable speed, scale and agility, like Vertafore’s MGA Systems. By investing in digital tools and platforms, MGAs can use the integration of cutting-edge technologies to their advantage, create improved underwriting processes, and customized offerings.