A specialized intermediary granted authority by carriers to underwrite, bind and sometimes service certain lines on the carrier's behalf.
Managing General Agent (MGA)
A specialized intermediary granted authority by carriers to underwrite, bind and sometimes service certain lines on the carrier's behalf.
A managing general agent (MGA) is a wholesale intermediary that carriers delegate underwriting authority to. Unlike a typical agent, an MGA can bind coverage, set pricing within guidelines, and sometimes handle policy issuance and claims for the programs it manages.
Retail agencies work with MGAs to access specialized or hard-to-place risks — niche programs, specific industries, or coverages a standard carrier will not write directly.
- MGAs often operate in the surplus/specialty market.
- Binding authority is the defining feature — they act with delegated carrier authority.
For an independent agency, an MGA is a market: a source of appetite and capacity for accounts that do not fit standard carriers. MGUs (managing general underwriters) are a closely related concept.