Why are Managing General Agents (MGAs) important to the commercial Property and Casualty insurance industry?

Managing General Agents (MGAs) are a specialized type of insurance agent or broker entrusted with underwriting authority from an insurer. With the specialized expertise MGAs possess, they lead the way in helping create innovative insurance products to meet market needs. They are intermediaries who play a pivotal role in the commercial Property and Casualty (P&C) insurance sector by adding value to all stakeholders, specifically insurers and reinsurers, insurance brokers, and insureds.??

The specialty knowledge of MGA underwriters in niche markets allows them to identify and address unique risks and source critical, much needed underwriting capacity to improve upon existing products and create new insurance solutions. MGAs and their underwriters possess the expertise, knowledge, experience, and relationships required to generate bespoke — and often complex — insurance coverage and options that are not readily available through traditional insurance channels.

Insurers and reinsurers appreciate, value, and acknowledge the disciplined approach to underwriting by MGAs and are prepared to assign their capacity and delegate their underwriting authority to MGAs.?They differ from traditional brokers as their duty is to the insurer while brokers represent the insured.? This delegation of underwriting authority is hard earned, and the responsibility is not taken lightly by MGAs. This delegation of responsibility allows MGAs to distribute and profitably underwrite insurance products efficiently, faster and more cost effectively than traditional retail property and casualty insurance companies (and Lloyds syndicates).??

Insurance brokers seek out MGAs because they provide brokers with easy and direct access to specialized and knowledgeable underwriters, insurance coverage and insurance markets that they may not normally be able to access on their own. The MGA’s skills enhance an insurance broker's ability to offer tailored solutions which strengthens their client relationships and helps them navigate niche insurance markets through the support and experience of specialized underwriting capabilities.??

Often an insurance broker requires a quick turnaround on quotations and policy documentation. These service requirements are what attracts insurance brokers to MGAs when compared to traditional retail property and casualty insurer channels.?In short, MGAs contribute significantly to the innovation, diversification and financial success of the commercial Property and Casualty insurance industry.??

To learn more about TSW and its team of experienced and knowledgeable specialty underwriters please click on the following link? https://www.tsw-management.ca/