MGAs Demonstrate Continuing Value in a Hardening Market

August 30, 2022 by Myles Gould and Riley Parnham
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The heightened perception of risk stemming from cyber attacks, the climate, pandemics and even inflation are just a few of the volatile factors fueling a demand-side need for more specialized coverage approaches, which underscores the premium growth prospects for the overall managing general agent (MGA) segment.

AM Best estimates that the total premium written through the MGA market in the United States reached $60 billion in 2021 compared with $51 billion in 2020. This followed the growth story for the economy in 2021, as lockdowns lifted and monetary policies eased, which contributed to real gross domestic product growth of 5.7 percent. As businesses reopened, commerce resumed and the insurance industry experienced a premium growth of 9.5 percent, attributable to a hardening of market conditions and pricing.