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MGA Insurance (Definition: All You Need To Know)

What does MGA Insurance mean?

How do you define MGA Insurance in simple terms?

What’s essential to know?

Keep reading as I have gathered exactly the information that you need!

Let me explain to you what MGA insurance means once and for all!

Are you ready?

Let’s get started!

What Is An MGA Insurance

MGA is an acronym used to refer to a Managing General Agent in the insurance industry.

A Managing General Agent is a person who is given the authority to underwrite policies on behalf of an insurance company.

In other words, MGAs have the ability to perform certain functions that a traditional insurance broker or insurance agent would not be able to do, such as:

  • Provide binding coverages
  • Underwrite policies
  • Provide pricing
  • Appoint retail agents 
  • Settle claims

As you can see from these functions, these are typically done by the insurers (and not an insurance agent or broker).

MGAs are given the authority to manage all or parts of an insurer’s business and act as insurance agents or brokers at the same time.

MGA Insurance Definition

How do you define MGA insurance?

The International Risk Management Institute (IRMI) provides the following definition of MGA insurance:

A specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer.
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Managing General Agents are individuals generally specialized in a certain insurance area or sector.

Insurers may find it useful in dealing with MGAs relating to a specific part of their insurance business or for specific locations rather than hiring the expertise internally.

MGA Insurance Meaning Takeaways 

So there you have it folks!

What is MGA insurance in simple terms?

In a nutshell, MGA insurance refers to Managing General Agents who “manage” all or part of an insurer’s insurance business.

Typically, MGAs sell special insurance products requiring specialized knowledge and expertise to underwrite.

For example, in the area of professional liability insurance, some insurers will work with insurance MGAs to price police and underwrite coverages.

I hope that you now have a good understanding of the meaning of MGA insurance so you can continue your investigation or learning!

Good luck!

D&O
General agency
General agent
Insurance agent
Insurance broker
Insurance carrier 
Insurance policy
Managing general agent
MGA insurance company
MGU
Reinsurance 
Retail agent
Specialized expertise
Underwriter
Wholesale agent
Wholesale broker
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