Capacity and the MGA Market: Thriving, Growing, and Innovating

This article is by Michael Keating, CEO, Managing General Agents’ Association (MGAA)

The UK’s MGA sector is in a robust and healthy position, with substantial capacity support and a strong pipeline of new entrants. MGAs continue to play a crucial role in the insurance market, matching specialist capacity and risk appetite with innovative and targeted insurance solutions. Far from struggling to secure backing, MGAs continue to attract strong capacity partners, reflecting confidence in their business models, underwriting expertise, service delivery and ability to deliver long-term profitable growth.

In 2024, the MGAA saw further steady expansion in its membership, with 233 MGA members in the UK – an increase of 58.5% since 2019. This trajectory underscores the strength of the MGA model and the confidence insurers place in MGAs to distribute and manage risk effectively. We have also observed a positive start to the year, reinforcing the view that MGAs remain a highly attractive segment of the insurance market.

The Role of MGAs in the Market

Insurance capacity – the amount of risk an MGA can take on behalf of an insurer – remains the dominant pillar and critical factor in the sector’s sustainability. The continued growth of MGAs demonstrates that capacity providers recognise the value MGAs bring, most notably in underwriting expertise in niche and specialist markets where traditional insurers may lack the knowledge or access to specific distribution channels. With their ability to underwrite and service tailored risks, MGAs provide agility and innovation that enhance the overall insurance ecosystem.

Raising the Bar

Professionalism, expertise, and trust are fundamental to the continued success of MGAs. The response to our MGA Assess online training tool has been overwhelmingly positive, with 1,580 professionals completing courses in 2024 alone – highlighting the industry’s strong commitment to continuous professional development.

Indeed, separate to MGA Assess, the introduction of Chartered MGA status has been a significant milestone in the professionalisation of the sector, setting a benchmark for excellence, accountability, and consumer trust. Unlike brokers and insurers, MGAs previously lacked a dedicated professional designation. In collaboration with the CII the MGAA developed a Chartered MGA designation to formally recognise the technical expertise and best practices upheld by MGAs and their professionals.

For MGA firms, engaging with professional development tools and working towards Chartered status enhances credibility, making them more attractive to insurer partners seeking reliable and highly professional underwriting expertise. It also aids talent acquisition and retention, as top professionals are drawn to organisations that invest in their people and uphold industry-leading standards.

A Bright Future for MGAs

The MGA market is thriving, with increasing numbers of firms securing complementary capacity, launching innovative products, and expanding their reach. At the MGAA, we are committed to supporting our members by championing professionalism, fostering strong capacity relationships, and ensuring that MGAs remain a dynamic and indispensable part of the insurance industry.

We encourage all MGAs to consider the value of Chartered status, not only to elevate their businesses but to contribute to the broader goal of strengthening consumer trust and industry credibility. Chartered status can increase access to capacity providers, as insurers may have greater confidence in a firm with strong governance and ethics

The MGA sector is growing, professionalising, and earning greater recognition than ever before – proving that it is well-positioned for continued success.