The Managing General Agent (MGA) sector continues to thrive, delivering innovative, specialised solutions in a dynamic insurance market. Yet, beneath the surface of this success lies a vital, often understated foundation: the growing and evolving ecosystem of suppliers and incubators enabling MGAs to grow, innovate, and remain competitive. As we look to 2025, the importance of these partnerships has never been clearer.
MGA suppliers are critical in fostering sustainable growth within the sector. By providing tools and technologies tailored to the unique needs of MGAs, these partners streamline operations and unlock efficiency. Advanced data analytics platforms, underwriting tools, and compliance solutions empower MGAs to scale, while focusing on core business objectives.
This efficiency is more than a competitive advantage - it is a necessity. As MGAs seek to differentiate themselves with niche products and exceptional service, the ability to adapt to market changes, quickly and cost-effectively, is critical to sustainable growth. Suppliers enable this agility and operational efficiency, equipping MGAs with solutions to optimise resources, reduce administrative burdens, and build operational resilience.
One key area where suppliers significantly enhance MGA operations is claims management. Over 90% of MGAs utilise third-party administrators (TPAs) to handle claims, an outsourcing model that has become integral to the MGA community.
TPAs bring operational expertise, established workflows, and a level of scalability that is particularly beneficial for start-up and growth-stage MGAs. This partnership not only reduces the upfront costs of building an in-house claims team but also ensures claims are handled efficiently and in compliance with regulatory standards.
Moreover, TPAs deliver actionable insights through data reporting and analytics, helping MGAs refine their underwriting strategies and improve customer satisfaction. A well-aligned TPA also enables MGAs to focus on their core competencies - underwriting and customer acquisition - while enhancing the claims experience for policyholders.
Compliance partners are another increasingly critical component of the MGA supply chain. Smaller MGAs, in particular, rely on these experts to navigate an ever-evolving regulatory landscape, including Consumer Duty regulations, FCA reporting requirements, and specific measures for the Lloyd’s market, if required.
By partnering with compliance specialists, MGAs can ensure they meet stringent standards without diverting resources from growth-focused activities. This alignment not only safeguards the reputation of individual MGAs but also upholds the integrity of the broader MGA market.
For start-up and early-stage MGAs, incubators are also establishing themselves as transformative partners, playing a vital role in laying the groundwork for success. Launching an MGA can be daunting, requiring expertise across regulatory, operational, and market disciplines. Incubators - which operate under various business plans in terms of investing in MGAs and aligning with risk capital and capacity - provide a structured, pre-launch framework where these challenges are addressed systematically.
From business plan reviews to capacity provider and investor introductions, incubators ensure that new MGAs don’t have to reinvent the wheel each time. With access to proven playbooks, regulatory guidance, and scalable technology platforms, start-ups benefit from a head start built on industry experience.
Crucially, incubators also offer entrepreneurial support, fostering innovation while alleviating administrative and compliance pressures. This allows MGAs to focus on designing bespoke products, exploring underserved markets, and cultivating partnerships that drive growth.
Looking ahead, the ecosystem supporting MGAs will continue to mature, driving sustainable growth across the sector. As new MGAs enter the market and existing players seek to scale, the MGAA expects the role of suppliers to become even more central. The rise of niche offerings, supported by incubators, claims, compliance and innovative tech partners, will define the next phase of MGA development.
However, MGAs need to select their partners carefully. While the market offers a wealth of suppliers, those recognised for delivering market-leading products and services that align with MGA's needs will provide the greatest value. At the MGAA, we require Supplier Members to adhere to our Code of Conduct, a badge of excellence that ensures the highest standards of professionalism and trust, and we would urge MGAs seeking a supplier partner to look out for best practice recognition like this.
Suppliers, incubators, TPAs, and compliance partners are increasingly enablers of the success of the MGA sector, and of standardising best practices in launching and growing compliant MGAs, helping make our sector become more resilient. As MGAs continue to rely on agile, technology-enabled solutions and trusted partnerships to enhance their operations, their ability to adapt to market demands and regulatory pressures will only strengthen. The future of the MGA sector is bright.
