Today's Managing General Agencies (MGAs) and Managing General Underwriters (MGUs) look vastly different than they did ten years ago. The
SMA has spent the past decade tracking over 100 startup MGA/MGU entities, in addition to observing the developments at incumbent MGAs that are taking their offerings to the next level amid increased competition. New SMA research uncovers the six different insurtech MGA business models that new entrants are pursuing today. Each model's focus ranges from MGAs that deploy line-or segment-focused businesses to serve niche markets, such as
In addition to the insurtech models, SMA's market analysis also sheds light on incumbent and traditional MGAs that have served the market for many years. Faced with new challenges, including changing customer expectations and increased competition, incumbent MGAs realize that relationships are no longer enough to stand out in a field of rivals.
These models illustrate the evolution of MGAs in recent years, and SMA expects further developments to unfold as transformation continues in the sector, including:
- Growth in MGA premiums,
- Continuation of new MGA launches,
- Increased M&A activity among MGAs, brokers, and carriers, and
- Expansion into
new product lines/segments.
What's clear is that MGAs bring tremendous value to insurance transactions, and new entrants are elevating services by driving
For more information on business models within the MGA/MGU property & casualty insurance market, read SMA's recently published research report, "
This blog entry has been reposted with permission
