This piece is by Charles Rowley, Director at DA Strategy
The lead and follow model in Lloyd’s and the London Market is being redefined. What was once a more straightforward construct is, of course, far more nuanced, as shown by the findings of Lead and Follow in the Lloyd’s and London Market: Beyond the Binary.
For MGAs and delegated authority businesses, this continues to reshape where value sits, how capacity is deployed and what it really means to lead.
From position to capability
One of the most important developments is the move away from treating leadership as a position on the slip, towards understanding it as a function of capability. The LMA’s description of six distinct roles, from full-service lead through to capacity follower, together with the description of the ‘Delegator’ provides a useful view of how the market operates both for carriers and MGAs.
For MGAs, this is a helpful reframing. They have often been labelled as followers by default, regardless of their technical contribution. In reality, many MGAs operate as niche leaders, or even more, bringing deep expertise, specialist underwriting and access to differentiated portfolios.
That distinction matters. The lead is not always the one at the top of the slip; it is the one others are willing to follow. On that basis, a high-quality MGA with strong data, underwriting discipline and claims insight can clearly be a leader, regardless of formal positioning.
The “smart follow” question
Alongside this, the evolution from “slow follow” to “smart follow” is gaining traction. In theory, a more efficient follow model, supported by technology and data, should reduce duplication and improve market economics. In practice, it is still developing.
There is clear interest from larger market participants in building more efficient follow strategies. Aligning behind a trusted lead or following high-performing portfolios is an attractive proposition. It raises a simple question: why replicate effort if confidence in the lead is high?
For MGAs, however, the impact is less clear. Smart follow has yet to materially reshape the delegated authority landscape. MGAs are not passive participants. Many are led by people who have been working in ‘Full Service Lead’ carriers who want to deliver even better service to clients. They set up MGAs that initially operate across both lead and follow roles, building capabilities as followers before stepping into leadership positions and innovating to do more than the current Full Service Leads..
The more relevant question is how MGAs continue to differentiate in a market that is becoming more structured and data-driven.
Depth over breadth
The report also points to a broader strategic shift. Success is less about scale or multi-class expansion and more about depth of knowledge and service strength.
For MGAs, this aligns with where the model has always been strongest. The most successful MGAs focus deeply on a class or niche, building technical capability, data insight and operational expertise that others cannot easily replicate, often because they lack MGA’s agility.
That is where value is created. Not by competing with full-stack carriers, but by identifying gaps and filling them with something genuinely differentiated, whether that is geographic access, specialist distribution, deeper analytics or better risk management.
Without that differentiation, capacity becomes harder to secure and retain. With it, MGAs can move along the spectrum, from follower to influential participant and ultimately to full-service leader.
Building capacity around the MGA
Building a successful MGA is rarely a standalone exercise. Securing a lead is only part of the equation. Equally important is understanding who will follow and how that capacity comes together.
Both MGAs and carriers are on their own maturity journeys. Some leaders are established and looking to expand, while others are earlier in their development and building capability alongside their partners. MGAs may work with different types of leaders at different stages, developing expertise, credibility and scale over time.
This creates a more dynamic ecosystem. A strong MGA is defined not just by its underwriting proposition, but by how effectively it brings together aligned and complementary capacity.
What comes next
Two delegated themes stand out in our view:
First, payment for full lead expertise: The strong reference to the ‘Consortium’ model as being one of the few where lead expertise and service is clearly remunerated is fascinating! Despite the many arguments that ‘lead fees’ create, the Consortium Model is evidence of a model that works and is growing in use in our market.
As any strategist may tell you there are two main winning business strategies in the world: 1. Low Margin, Low Cost or 2. High Margin, High Cost.
Clearly, these can work for carriers and MGAs too. MGA’s often best exemplify the second higher margin approach, A. Because they need to justify the costs, and B. because they can use their agility to deliver extra service. Investing in real leadership and innovation takes margin, and this is where MGAs and Consortium Leaders can and often do deliver.
Second, Specialism: MGAs can only succeed where they are clear on their proposition. The question is not whether an MGA is a lead or a follower, but whether it has a sufficiently differentiated capability to justify its place in the ecosystem.
In the end, this is less about labels and more about how well the model is actually run. As roles become more fluid, the discipline around delegated authority matters more than ever. Clear oversight, strong data and a proper understanding of how capacity is being deployed are what give both MGAs and their partners confidence.
Increasingly, that is being delivered through partnership-led approaches, where firms work alongside experienced delegated authority specialists to optimise the build strategy, put the right structures in place and develop the capabilities from the outset. It is this foundation which allows MGAs and carriers to grow with confidence, rather than getting caught up in where they sit on slip.
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