The MGA segment has been expanding faster than the broader P&C market for years. Recent data from Conning shows MGA premium in the US rising beyond $114 billion in 2024, well ahead of the industry’s overall pace. Momentum like that naturally raises a question. Why is this model moving so quickly, and why now?
Underwriting pressure has intensified, especially in markets where risk is changing quickly and demands niche expertise. That’s where MGAs have stepped in, and carriers are leaning on them more than ever.
The Growing Appeal of the MGA Model
MGAs do well in niche markets because they’re built to go deep in a narrow space. And today, those are the markets giving carriers the most trouble. Wildfire seasons shift from year to year. The stakes are extraordinarily high in management liability and cyber coverage. Coastal regions face storms that strain historical assumptions. And emerging segments like the gig economy, pay-as-you-drive, and autonomous vehicles change so quickly that many underwriting frameworks fall behind.
Carriers need sharper specialization to stay active in markets like these, and that’s exactly where MGAs excel. Their model gives them the kind of precision and day-to-day familiarity with these risks that’s hard for a broad carrier organization to match.
This pull has also brought in a wave of external capital. Over the last few years, private equity and venture investors have moved heavily into the MGA space, drawn to the growth trajectory and the ability to scale without taking on loss exposure. It’s a fit for the returns they want and gives MGAs the runway to strengthen their operations.
A Faster Way for Carriers to Explore New Markets
MGAs also give carriers a way to try something new without a big upfront commitment. Standing up a new product line internally takes time, budget, and experienced underwriters. Doing it through an MGA takes far less, with MGAs already having the expertise to access and adapt within a market segment.
For carriers, that creates a low-risk path to explore a segment before making long-term commitments. They can see how a product performs, refine it, and decide whether to expand or step back. In markets where conditions can shift in a single season, that flexibility has become essential.
Technology That Helps MGAs Scale
Many MGAs that built their own technology systems several years ago have found that those systems struggled to keep up with the added volume and complexity brought on by meaningful business growth. As a result, more MGAs have begun looking for packaged technology that can scale with them without pulling focus away from underwriting.
In my work at Guidewire, I see how important cost and speed are at this stage. MGAs keep a fraction of the premium they write, so efficiency in cost and in time really matters. They want core systems that help them get to market fast and stay within tight economics while continuing to grow.
That’s where our products have played a role. MGAs use our out-of-the-box, robust capabilities to launch quickly, then build on it with configurability, integrations, and analytics as their operations expand. Some have also found value in our deep carrier experience as they expand their business model into a full-fledged insurance company.
What This Means for the Market
Carriers are facing real pressure, and MGAs give them a way to respond with more focus, more speed, and the confidence to operate in difficult markets. We’re seeing them step into wildfire regions, coastal zones, and other areas that have struggled to stay insured.
As these areas become more insurable, more people and businesses gain access to the coverage they need. It strengthens those communities and sets up a future where specialization becomes one of the industry’s most effective tools for navigating change.
This blog is inspired by a conversation between Brian Desmond, CMO of Guidewire, and Zachary Gustafson, General Manager, Claims and InsuranceNow, at Guidewire. Check out the full conversation here.
Listen to additional Guidewire Conversations here.