what is an mga

An MGA, or managing general agent, is a specialized type of insurance agent or broker that has been granted underwriting authority by an insurer. They are appointed by an underwriting insurer to solicit applications from agents for insurance contracts or to administer programs and negotiate contracts for an insurer. An MGA manages all or part of the insurance business of an insurer and acts as an insurance agent or broker for the insurer, while working as the intermediary between carriers and agents and/or insureds. An MGA can perform various services for insurance carriers, including underwriting, pricing, and claims handling. They can also provide access to a wider range of insurance products and more competitive rates. Unlike traditional agents/brokers, an MGA is vested with underwriting authority.