The European Managing General Agent (MGA) sector is undergoing a significant transformation, with implications for reinsurers, carriers, and brokers worldwide.
According to new analysis from Howden Re, the market is not only expanding in scale but also maturing in its approach to capacity management and carrier relationships.
Enrico Bertagna, managing director of Bowood Europe, and Tobias Andersson, head of continental Europe at Howden Re International, note that this evolution is prompting MGAs to move beyond the fragmented, multi-carrier models of their early years and embrace more focused, strategic partnerships.
“In our report Agents of Change, published earlier this year, we highlighted that the European MGA market is expanding in both size and sophistication,” said Bertagna. “A key byproduct of this evolution is the emergence of MGAs moving from small to mid-sized entities, typically around the €50 million GWP mark after 5-10 years of operation. This growth stage marks a turning point in how they manage capacity.”
Historically, MGAs have diversified their capacity by working with a broad panel of carriers -often 20 to 30 relationships - to mitigate the risk of sudden changes in carrier appetite or strategy. However, as MGAs reach the €50 million GWP threshold, this approach can become unwieldy and inefficient.
“Early on, it’s sensible for MGAs to build as many carrier relationships as possible. You never know when a carrier might change strategy or pull out,” Bertagna explained. “But by the time an MGA reaches that €50 million mark, managing so many relationships becomes complex and resource-intensive, leading to a fragmented portfolio and a lack of depth in strategic partnership.”
This realization is driving a new trend: MGAs are now seeking to rationalize their carrier panels, consolidating from dozens of relationships to a core group of six to eight strategic partners. The aim is to secure more stable, long-term capacity and unlock improved economics.
“At that stage, profitable MGAs realise they can negotiate improved terms,” Andersson adds. “By working with fewer, more strategic carriers, they can gain both operational efficiency and potentially better commissions or fees.”
This shift towards consolidation and deeper partnerships presents new opportunities for brokers and reinsurers. “It allows our team to draw on the depth of experience and insight we’ve built across markets,” said Bertagna. “Restructuring an MGA’s carrier panel requires specialist knowledge, deep market connections, and skilled negotiation. It’s a chance for brokers to add real value.”
Andersson notes a growing appetite for portfolio deals, which can provide carriers with a more streamlined route to distribution and enable MGAs to access committed capacity partners. “We are seeing a growing appetite for portfolio deals, which offer carriers a faster route to distribution and a more streamlined, strategic relationship,” he explained.
Traditionally, carriers - particularly those in the London market - have operated in product silos, with individual underwriters holding authority for specific lines. This structure has historically made cross-product portfolio deals challenging. However, the landscape is shifting.
“To overcome these barriers, some carriers are now creating dedicated divisions with their own P&L and authority to enter strategic agreements across product lines,” said Bertagna. “That is a powerful shift as it gives MGAs a committed partner they can rely on as they innovate and expand.”
Bertagna sees these developments as the beginning of a more strategic era for MGAs and their capacity providers. “Facilities have existed for years, but this is the start of a more strategic way of doing business,” he said. “The momentum is clear, both from MGAs who want to make it happen and carriers ready to support them.”
Andersson agrees, noting that as leading market participants adopt new structures and approaches, others are likely to follow. “When the big players start doing things differently, others take notice. More carriers will structure themselves to support this change and that’s good news for both MGAs and brokers. More choice means better outcomes for everyone,” he concluded.
For reinsurers and global market participants, these trends signal a more sophisticated and collaborative MGA landscape in Europe - one where strategic alignment, operational efficiency, and long-term partnerships are set to define the next phase of growth.
