The UK’s Managing General Agent (MGA) market remains one of the most dynamic and resilient parts of the insurance ecosystem, driven by underwriting expertise, agility, and strong broker relationships.
But as rates soften and economic conditions tighten, MGAs must maintain their service standards, invest in operational infrastructure, and strengthen claims collaboration to sustain their success, said Mike Keating (pictured), CEO of the Managing General Agents’ Association (MGAA).
Speaking to Insurance Business UK, Keating pointed out that fraud and repudiations tend to rise amid softer markets, which can put the relationship between MGAs, insurers, and third-party administrators (TPAs) under strain.
“We’ve seen little improvement (in claims satisfaction ratings) in the last four years, and progress has been slow. There’s dissatisfaction on all sides, and we need greater collaboration to ensure consistent outcomes for customers,” Keating said, adding that the association is addressing this through technical claims insight sessions, networking events, and its upcoming claims conference.
While MGAs have invested heavily in data, pricing, and risk analytics, Keating believes more attention and investment must go into the “back office.”
“It’s not as sexy as the front-end analytics, but it’s just as critical,” he said. “If we want to deliver the best customer outcomes, the industry needs to put real investment behind claims operations and infrastructure.”
The good news is that artificial intelligence (AI) and system modernisation are already helping some MGAs bridge that gap. With their clean system architectures, MGAs can integrate new technologies far more quickly than traditional carriers with legacy systems.
Keating described the MGA sector across the UK, Ireland, and Europe as “extremely buoyant,” a trend that has held firm for the past two to three years. He credits that strength to MGAs’ “unrivalled” underwriting capability and responsiveness.
“The ability for MGAs to use innovation, their agility, speed to market, and forensic understanding of their distribution and customer needs is unrivalled,” Keating said. “Many MGAs expanded their distribution during (COVID-19) lockdown because they were able to quickly respond to brokers’ needs.”
Despite strong tailwinds, the MGA sector is not without its challenges. The most pressing, according to Keating, is the broad softening of rates across nearly all product lines.
“That creates challenges, not just for MGAs but for the entire insurance market,” he noted. “MGAs thrive on delivering consistent underwriting returns, and in a soft market, that becomes more difficult. The key is navigating those conditions while maintaining profitability and service levels.”
Softening rates also put pressure on brokers and end customers, particularly amid ongoing economic uncertainty. “Customers are seeking savings on their insurance spend, which affects brokers and, in turn, MGAs,” Keating said.
But contrary to concerns about capital flight in a softer market, there’s currently “no sign” of pressure on MGA capital relationships, according to Keating. Insurers remain eager to deploy funds, reflecting continued confidence in MGA underwriting.
“We have 70 insurer members who are happy to deploy capital,” Keating said. “That’s a real endorsement of the MGA sector and the expertise it represents.”
He also believes MGAs today have more sophisticated data capabilities than ever before, enabling deeper collaboration and enhanced performance monitoring. This evolution reflects the migration of talent and expertise from the traditional company market into the MGA space.
“The relationship between MGAs and their capital providers has matured significantly,” Keating said. “It’s now a true partnership, with both sides doing due diligence on each other. MGAs have a choice of capital partners, and they’re looking for alignment on culture and business philosophy, not just funding.”
MGAs have now become integral to the distribution ecosystem, which means the relationship between MGAs and brokers must be nurtured.
Keating stressed communication: “There can never be enough dialogue between MGAs and brokers about customer needs and behaviour.”
“MGAs are no longer a fad. They are part of the fabric of a broker's placing strategy, where, before, they might have used MGAs as an afterthought,” he added. “If you’re a broker and you’re not dealing with MGAs, you’re missing out on a fantastic opportunity.”
