Glenn Clark, president of Rockwood Insurance, says the relationship between carriers and Managing General Agents (MGAs) has changed a lot over the years. In the past, carriers held most of the power and set all the rules. But now, MGAs bring new strengths to the table, like capital, data, and product design. This has led to a more balanced partnership where both sides share risks and rewards.
Clark recalls how, in the late 1990s and early 2000s, dominant carriers often refused to pay profit shares to MGAs. That attitude doesn’t work anymore. MGAs have proven their worth by bringing valuable expertise and resources, and their voices are heard more clearly today.
This shift began to take shape during the early days of Target Markets, an annual gathering where carriers showed off how selective they were in choosing programs. From the MGA side, this selectiveness often felt like carriers just didn’t want to engage seriously. Target Markets helped give MGAs a stronger voice.
As MGAs pushed back, the expectations for both sides changed. Carriers started to commit to clear timelines for responding to program submissions, and MGAs had to prove they could handle business at scale and build strong, long-term partnerships. Members of the MGA community urged carriers to better define the business they wanted and to respond to every submission, even if the answer was no. This improved dialogue has led to greater professionalism and respect on both sides.
Rockwood Programs, started in 1996, shows how this new balance can work. Clark explains that Rockwood, a smaller MGA, built its success by creating its own distribution network using e-marketing and teaching retail agents how to sell newer, specialized insurance products like employment practices liability insurance (EPLI). This made it easier to write policies for smaller businesses that big wholesalers might overlook.
Behind this approach is a detailed system for tracking who truly does business with Rockwood and who just shops for quotes without buying. This allows Rockwood to reward productive producers and focus its attention on profitable relationships.
Clark advises anyone thinking of starting an MGA that it’s not enough to just have capital and a niche idea. Starting fresh with no background or platform is risky. Instead, gaining experience by working with a successful MGA or joining an incubated program can help lower costs and build skills before going it alone. Joining industry groups like Target Markets to learn from others is also a good move.
On the topic of risk sharing, Clark points out that carriers benefit by not having to take on marketing risk directly since MGAs invest heavily in that area. If a new product doesn’t sell well, it’s the MGA’s loss. Alternative structures like captives or risk purchasing groups can help both sides by encouraging shared responsibility and better underwriting discipline. When people know they share in both the wins and losses, they tend to take the business more seriously.
Overall, the insurance market has moved from a one-sided setup to a place where carriers and MGAs rely on each other more than ever. Those who have adjusted to this new reality and built strong partnerships have seen great success. Those who have not may struggle to keep up.