Managing general agents (MGAs) have long been viewed in the insurance world as niche experts of markets that traditional carriers either can’t or don’t want to service. When risk or resources are limiting factors, MGAs often fill the void. As a result, they have carved out a significant part of the industry where they provide unique services to unique markets.
But that structure has been changing, and MGAs have been experiencing a growth spurt as a result.
A perfect blend for business development
Technology has gradually become a strong catalyst for change in the insurance industry, with a myriad of small upgrades over the years leading to a new landscape over time. At the helm of these changes—big or small—are MGAs, known for their early adoption of new, innovative solutions. In the past few years, as the industry has experienced hard market conditions, and carriers have reduced their risk appetites, MGAs have found themselves at the intersection of new markets and new technologies.
The result? Continuous, unparalleled growth—at least, for those who took advantage of the opportunities. And according to experts featured in our recent webinar, Tech on top: A conversation with Conning, this growth is primed to extend well into 2025.
How MGAs are leveraging technology
MGAs have integrated a bevy of different solutions to power a common set of functions across their businesses. These functions include policy administration, accounting, claims, and rating and quoting, and provide MGAs with the flexibility and speed they need while maintaining a lean internal structure.
While these solutions have become the standard for top MGAs, there is an evolution from using technology primarily to automate tasks to a more strategic approach. As Lauryn Kothavale, VP of Insurance Research at Conning put it: “MGAs are looking at technology not just as a tool for improving efficiency, but as a way to build resilience and tap into new revenue streams, which positions them for sustained growth in today’s unpredictable market environment.”
This focus on technological investment isn’t a secret, either. According to a joint 2024 study done by Vertafore and Conning, just 5% of MGA executives thought their firms were not investing enough in technology, a number that has fallen from 23% in 2019.*
“MGAs are really taking a strategic approach to their technology investment, viewing it as a key driver of growth and a way to really stand out in the market.”
– Lauryn Kothavale, VP of Insurance Research at Conning
As MGAs take on increased market volume and changing demands, they are looking for technology to adapt quickly and improve their speed to market. If an MGA can offer better services at a faster pace, even across new markets, that bodes well for their clients, both current and future.
A look ahead
One area where MGAs are placing significant investment is retail agent support and experience. Providing a custom agent portal that empowers agents to better serve policyholders, onboard, and communicate with the MGA is proving paramount to building a strong, lasting relationship. It also enables MGAs to take on larger volumes of agents without overloading staff.
Agent portals are a key piece, but they are just one of many changes that may play a big role for MGAs in the year ahead. To get the latest on MGA technology and a peek at what 2025 might hold, check out our on-demand webinar.
* Tech Power: How MGAs are Shaping the Future of Insurance, Conning, November 2024.