There is no arguing about the strength of the managing general agent (MGA) market in 2023. MGAs' agility, innovation, and focus on specialty and complex lines have positioned them for continuous year-over-year growth.
Much of MGAs' success can be attributed to how versatile they can be. Over the last decade, ReSource Pro has identified and tracked well over 100 startup MGAs/MGUs deployed under various
A new ReSource Pro research report examines the channel distribution plans of MGAs in 2023, including their current partnerships, how they expect distribution to change in the next few years, and their strategies to expand various channel partners over the next few years. Considering the many challenges in the market today, such as rapid technological advancements, evolving customer expectations, and a volatile economic environment, MGAs are exploring aggressive plans to grow certain distribution channels.
While MGAs continue to expand and add foundational channels, such as wholesalers and retail agents/brokers, there is an interesting shift in their approach to Insurtech. A third of MGAs are planning to add Insurtech partners over the next three years, and 40% expect to expand/grow their current partners in the space, such as distribution platforms or digital agencies. Affinity relationships and partnerships with other MGAs/MGUs are also likely to develop significantly among more than half of MGAs.
Regardless of the channel partner an MGA chooses, conducting thorough due diligence and ensuring strategic priorities align across parties is essential. Identifying partners that strengthen market position will be key to MGAs' long-term success.
This blog entry has been reposted with permission
