Insurers and brokers are pushing managing general agents (MGAs) in Canada to prove their worth beyond simple distribution, raising expectations for innovation, transparency, and strategic insight. At the National Insurance Conference of Canada (NICC), industry leaders said MGA partnerships must now deliver data-driven solutions and long-term stability, not just market access.
Tammy Parris (pictured centre left), assistant vice-president of corporate underwriting at HSB Canada, said carriers are increasingly selective about which MGAs they choose to back. Beyond compliance and standard operational checks, she stressed the importance of creativity and open communication.
“We try to mine the Canadian MGA book to say, okay, who’s out there? What are they doing? Are they doing something different?” Parris said. For HSB, which is one of the larger cyber insurers in North America, that means working with cyber-focused MGAs that bring niche expertise to the table.
The relationship, she added, should be a two-way exchange: insurers share data and technical insights, while MGAs bring forward emerging needs and new market opportunities. “We look for them to be innovative. We want them to say, Hey, we’ve got this situation where we have this gap. Can you figure out how we can fill that gap?”
Parris emphasized that honesty and dialogue are non-negotiable. “If something’s not working, come and tell us. If you need something different, talk to us. Let us help you – and we’ll continue that partnership.”
Sean Duggan (pictured right), senior vice-president of special risks and claims at KRGinsure, said brokers also have to raise their expectations when entering new MGA relationships. Beyond simply placing difficult risks, he argued, brokers need to assess whether an MGA can truly act as a strategic partner.
“I think it starts with due diligence,” Duggan said. That means evaluating more than licensing and compliance — it’s about whether the MGA’s expertise and culture align with the broker’s client base.
Questions worth asking, he said, include: What’s their claims philosophy? Do they have the resources to support you? Are they proactive in handling challenges? Are they bringing innovative products to market that help you differentiate yourself as a broker in an increasingly crowded marketplace?
The best MGA partnerships, Duggan said, are not transactional. They provide brokers with tools and insights that sharpen their competitive edge while delivering tailored solutions to clients.
Stephen Stewart (pictured centre right), president and CEO of Stewart Specialty Risk Underwriting, said the responsibility to vet relationships runs both ways. For MGAs operating in highly specialized niches, he argued, it is just as critical to assess brokers as it is for brokers to assess MGAs.
“It’s always a balance between knowing what the capability of a brokerage is and balancing that against an opportunity that may come to a broker that isn’t necessarily in the space but has some people in-house who can do the work,” Stewart said.
For him, the priority is long-term stability – both for clients and for the broker relationship itself. That often means working with a small broker network and concentrating on those who understand the nuances of a narrow market. “We have a very small broker plan, but also a few brokers we don’t do very much business with who are very, very good at this very small niche,” he said.
The risk, Stewart warned, comes when brokers lack the expertise to manage highly specialized placements. “It’s really important that the broker understands what they’re doing. Otherwise they’re not going to be able to serve the client,” he said.
Duggan added that the most forward-looking MGAs aren’t just waiting for brokers to bring them business – they are approaching brokers directly with data-driven opportunities.
“At the same time, we are seeing MGAs come to us proactively and say, ‘Hey, we think there’s an opportunity here for you to partner with us,’” he said. In a competitive market where organic growth is difficult, that kind of outreach can make the difference.
By leveraging their own data insights, MGAs can highlight segments or niches that brokers may not have been targeting, unlocking new business that benefits all sides. “If you can have that kind of dynamic dialogue with an MGA, based on their data and insights, it creates opportunities to unlock potential business,” Duggan said. “That’s becoming more apparent as well.”
