Insurance Business America recently released its 2025 report on the best wholesale brokers and managing general agents (MGAs), highlighting a significant trend in the insurance industry. The report shows that more retail brokers are turning to wholesalers and MGAs for their business needs. This year, 33% of brokers reported that they conduct over half of their business through these partners, a notable increase from 23.35% last year.
This shift is happening alongside a remarkable rise in premiums within the excess and surplus (E&S) lines market. The Wholesale & Specialty Insurance Association (WSIA) reported that direct premiums in surplus lines soared by 17.4% in 2023, reaching a record $115.6 billion, up from $98.5 billion in 2022. Investment firm Conning also pointed out that the E&S sector has enjoyed a 21% compound annual growth rate over the past five years, outpacing the overall property and casualty market. This growth is attributed to factors such as regulatory flexibility and advancements in technology, including artificial intelligence.
Several firms have stood out in this competitive landscape. Monarch E&S, Wholesure, and Gorst & Compass have all earned 5-Star status for their exceptional performance. Monarch E&S, led by president Yiana Stavrakis, focuses on providing tailored solutions for mid-market clients and has introduced a custom personal umbrella product to meet market needs. Wholesure, established in 2024 through a merger, has impressed the industry with its innovative digital platforms and aggressive recruitment of specialists. Gorst & Compass has seen organic growth exceeding 25% for two consecutive years, thanks to strong partnerships and advanced quoting technology.
As the reliance on wholesalers and MGAs continues to grow, the insurance industry is likely to see further changes and innovations in the coming years. The trends highlighted in this report reflect a dynamic market that is adapting to new challenges and opportunities.