what is mga

A Managing General Agent (MGA) is a specialized type of insurance agent or broker that has been granted underwriting authority by an insurer. An MGA can administer programs and negotiate contracts for an insurer, and manage all or part of the insurance business of an insurer while working as the intermediary between carriers and agents and/or insureds. The insurer has given the MGA the power to underwrite and perform various other tasks that would normally be performed by the insurer in-house. Some MGAs specialize in a particular type of insurance or risk, such as property, cyber, aviation, or construction. The functions of an MGA may include soliciting new business, promoting insurance products to customers, agents, and brokers, appointing retail agents, underwriting, binding, policy administration, claims, and distribution. MGAs are intermediaries that act as a distributor and outsourced service provider for both insurers and reinsurers, providing underwriting expertise, insurance cover, and related services to insurers on behalf of the carrier.