The managing general agency (MGA) sector is stepping into a new phase marked by stronger partnerships and faster tech changes. In 2024, MGAs underwrote about $89.9 billion in premiums, showing four years in a row of solid growth, according to AM Best. Insurers are beginning to see MGAs not just as distribution channels but as valuable partners for gaining unique risks and better underwriting results.
Rajiv Matta, chief innovation officer for MGA programs at MSI, shared that 2026 will be a turning point for the relationships between MGAs and capacity providers. He explained that MGAs are now delivering standout performance with loss ratios that beat the industry average. Because of this success, working with MGAs is becoming an essential part of insurers’ strategies, rather than just a trial or curiosity.
A big reason behind this shift is the rise of artificial intelligence (AI). MSI adopted an "AI-first" approach in 2025, using AI in product development, underwriting, claims, and other processes. Matta believes that MGAs and carriers who use AI will move ahead of those stuck with older systems. He expects clear winners and losers depending on how companies embrace AI, with forward-thinking MGAs pulling ahead and others falling behind.
But there’s also a challenge. AI is increasing cyber risks, especially with threats like deepfake videos and voice cloning becoming more common. These dangers affect not just big companies but everyday people too. Despite these risks, personal cyber insurance remains unpopular—more than half of agents say customers don’t fully understand or value it. Still, Matta sees MGAs as key players in filling these protection gaps by creating customized cyber products and using AI to price these new risks accurately.
Beyond technology, MGAs are building closer ties with brokers and carriers. As companies merge and grow bigger, MGAs that can offer tailored programs and fast service are becoming highly attractive. Matta described the ideal MGA partnership as one based on a long-term vision, with open data sharing and quick product launches. He noted the shift away from short-term deals where partners only engage when market conditions are favorable. Instead, he hopes more carriers will collaborate with MGAs early in the process, working together on new ideas without slow approval steps.
As the insurance industry changes, MGAs are positioned to play a bigger role by combining tech-savvy approaches with strong partnerships. The coming years could see this part of the market growing even more important, shaping how insurance is offered and priced.