The Managing General Agent (MGA) sector continues to be one of the fastest-growing parts of the U.S. P&C market. In 2023, MGA-produced premium surpassed $102B and grew faster than the broader P&C market, and indicators from 2024 show momentum holding up. That growth has also diversified—by capacity source, distribution model, and product mix—dispelling a lot of the conventional wisdom about MGAs.
Below, we unpack five common myths and contrast them with what the latest data and industry signals actually show.
Myth 1: “MGA growth is a bubble; it’ll fade with the cycle.”
What the data shows:
Growth has been steady and broad-based, not just a temporary spike.
- In 2024, AM Best estimates that MGA premium written by insurers rose 15% to $89.9B—the fourth consecutive year of double-digit growth.
- The number of very large MGAs is also climbing: 19 produced $500M+ DPW in 2024, compared to 12 in 2023.
- Conning reported that in 2023, total U.S. MGA premium surpassed $102B, growing about 13%, faster than the broader P&C market (~10%).
- In 2024, the fronting channel expanded sharply, showing that capacity providers remain confident in the MGA model.
Why it matters:
Healthy, multi-year growth through varying market conditions signals a durable distribution and underwriting model, not just opportunistic hard-market arbitrage.
Implications for MGAs & insurance carriers:
- Keep demonstrating program quality and transparency—capacity providers are selective but leaning into proven partners.
- Use growth periods to invest in data, reporting, and governance that sustain capacity relationships across cycles.
Myth 2: “MGAs only win in tiny niches; they can’t scale beyond specialty pockets.”
What the data shows:
MGAs absolutely start where expertise is deepest, but expansion now spans multiple commercial lines and geographies. Stamping-office data show the U.S. surplus lines market (a major placement venue for MGAs) hit $81B in 2024, +12.1% YoY, with commercial liability and commercial property remaining dominant drivers of premium. Growth is visible across large states (e.g., CA, TX, NY, IL) and across lines—evidence of scalable demand well beyond hyper-niche segments.
Why it matters: The scaling pattern looks less like “niche only” and more like specialty-led beachhead to broader footprint—particularly where MGAs marry underwriting talent with modern distribution and data.
Implications for MGAs & carriers:
- Double down on repeatable productization (rating, rules, forms, filings), not just one-off risks.
- Build producer enablement (portals, modern APIs) to compound growth across adjacencies.
Myth 3: “MGAs don’t (or can’t) maintain underwriting discipline.”
What the data shows:
Carriers are expanding their use of non-exclusive MGA arrangements (57% of P/C DPW in 2024 vs. 33% in 2017), a clear sign they value diversified, performance-managed delegated models. AM Best also points to more MGAs at larger scale and its ongoing Performance Assessment program—both signals of rising expectations and oversight. At the macro level, the U.S. P&C market’s statutory combined ratio improved to ~96.6% in 2024 (from 101.8% in 2023), underscoring a return to profitability and a higher bar for discipline across distribution channels, including MGAs.
Why it matters:
Discipline is increasingly measurable. MGAs that provide timely bordereaux, loss development, and exposure analytics, and adjust faster to signal,are strengthening credibility with capacity providers.
Implications for MGAs & carriers:
- Establish near-real-time monitoring (loss picks, rate need, attachment points) with shared dashboards.
- Align incentives (sliding-scale commissions, profit-sharing) and document control frameworks for audits and AM Best/insurer reviews.
Myth 4: “MGAs can’t compete on distribution; carriers will always out-scale them.”
What the data shows:
Distribution advantage is increasingly a software + data problem, not just a headcount problem. Stamping-office filings grew to ~7M premium-bearing items in 2024, showing robust transaction activity; MGAs are onboarding producers faster, transacting more frequently, and opening new markets where admitted carriers are constrained. Many carriers are leaning on non-exclusive MGA networks to widen reach, reduce concentration, and chase profitable segments—again, a vote of confidence in MGA distribution efficiency.
Why it matters:
MGAs that unify digital intake, appetite clarity, instant triage, and straight-through processing are proving they can scale producer loyalty and conversion without massive field forces.
Implications for MGAs & carriers:
- Publish digital appetite & eligibility (quote-bind-issue UX) to shrink producer “shopping” overhead.
- Instrument distribution with funnel analytics (hit/close ratios, bind velocity, leakage) and iterate fast.
Myth 5: “Technology isn’t a differentiator for MGAs—capacity and relationships are everything.”
What the data shows:
Capacity and relationships matter—but tech is the force multiplier. Conning highlights that MGAs’ relative freedom from legacy stacks gives them a “rare advantage of building modern tech from the ground up,” accelerating innovation and attracting top talent. In parallel, the fronting market—often a tech-heavy interface for program control and reporting—expanded to ~$18B in 2024 (+26%), reflecting demand for transparent, API-driven program operations.
Why it matters:
The next leg of growth is data-driven: granular pricing (by peril/exposure), machine-assisted underwriting, real-time loss monitoring, and automated compliance. Tech is how MGAs prove results—and keep capacity.
Implications for MGAs & carriers:
Operationalize embedded data & analytics (e.g., peril scores, loss-cost curves, contributory datasets) inside underwriting.
Standardize program data schemas and publish partner APIs for fronts/reinsurers to plug into performance views without friction.
Capacity Mix Is Shifting (and That’s Good for Resilience)
Two more data points reshape the old narrative that MGAs depend on a single capacity source:
- Fronting: Conning’s 2023 analysis estimated >$14B in MGA premium supported by fronts (≈17% share, up sharply since 2020), and third-party coverage indicates further growth in 2024. This diversifies MGA capacity, improves reporting hygiene, and speeds up program launches.
- Lloyd’s: Historically the largest single capacity source for U.S. MGA binder business, Lloyd’s U.S. binder growth was roughly flat in 2023 (~+1%), suggesting MGAs are finding more balanced capacity mixes across fronts and domestic carriers.
A Note on Market Context
The broader market environment has normalized from the pandemic shock. Industry profitability improved materially in 2024 (statutory combined ratio ~96.6%), with leading forecasts calling for stable results near the high-90s CR range into 2025—supportive for program growth while keeping underwriting discipline in focus.
What Winning MGAs Are Doing Differently (Quick Checklist)
- Prove discipline with data: Share monthly loss triangles, ultimate picks, exposure drift, and rate change by segment.
- Instrument distribution: Track bind velocity, producer productivity, and appetite fit; prune where conversion lags.
- Modernize the core workflow: Low-code product design, integrated rating/rules, and API-first portals for agents and partners.
- Capacity hygiene: Standardize bordereaux, automate audits, and keep reinsurer/fronts in the loop with real-time dashboards.
- Underwriting intelligence: Embed peril data (e.g., flood/fire/wind), telematics where relevant, and AI-assisted risk triage to keep expense and loss ratios in balance.
Bottom Line
The myths don’t hold up. MGAs are growing across cycles, expanding beyond narrow niches, operating with increasing discipline, and winning on tech-enabled distribution. Capacity sources are more diversified than ever, and the broader P&C backdrop is supportive but competitive. The winners will be those that combine underwriting craft with operational telemetry—and can prove it every month to their capacity partners.
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Sources
- Conning, “U.S. MGA Market Grows Swiftly – Exceeds $102B in 2023” (Jul 11, 2024). Conning
- AM Best, “MGA Premiums Showed Double-Digit Growth for Fourth-Straight Year in 2024” (Jun 4, 2025). AM Best News
- WSIA, 2024 Surplus Lines Stamping Office Annual Report (Feb 5, 2025). wsia.org
- S&P Global Market Intelligence, “2024 US P&C statutory underwriting results: From famine to feast” (Mar 20, 2025). S&P Global
- Carrier Management summary of Conning 2025 study, fronting market ~$18B (+26%) (Jul 9, 2025). Carrier Management
- Conning 2024 study page, Lloyd’s binder growth ~+1% and E&S CAGR context. Conning