Glossary

Managing general agent (MGA)

An agency or underwriting firm that an insurer authorizes by contract to quote, bind and issue policies for a defined book, sometimes handling claims too.

Also called: MGA, managing general underwriter, MGU, program administrator

A managing general agent holds delegated authority. Under a contract with an insurer, it can quote, bind and issue policies and often set rates within agreed guidelines. The insurer supplies the balance sheet and the "paper"; the MGA supplies specialist underwriting and distribution in a niche such as trucking, restaurants or cyber. It earns commission, usually plus a profit commission tied to how the book performs. Managing general underwriter (MGU) describes the same idea.

An MGA differs from a wholesale broker, which submits risks to insurers and cannot bind without their approval. Many MGAs write excess and surplus lines business, and some work with a fronting carrier whose reinsurers carry the risk. States regulate MGAs as producers, and many have statutes modeled on the NAIC's Managing General Agents Act requiring a written contract and insurer oversight.

For a buyer the key point is that the MGA's name appears on the quote but the insurer's name appears on the policy. Claims-paying ability, rating and whether the carrier is admitted all belong to the insurer, so check those. The guide on managing general agents covers how they work and what to ask.

Last reviewed October 10, 2026

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Related terms

Fronting An arrangement where a licensed insurer issues the policy but passes most or all of the risk to a captive or reinsurer, for a fee. Excess and surplus lines Insurance placed with non-admitted insurers for risks the standard market declines or cannot price, with freer forms and rates but less regulatory protection. Surplus lines broker A specially licensed broker who places coverage with non-admitted insurers after the admitted market has declined, and handles the required filings and taxes. Underwriter The insurer's risk evaluator who decides whether to offer coverage, on what terms and at what price, within the authority the company grants. Third-party administrator (TPA) An outside firm hired to run claims and administration for a self-funded plan, captive or self-insured program without taking on the insurance risk.

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Related insurers

Accelerant A risk exchange whose insurers issue policies for 300-plus specialty MGAs insuring small and mid-sized businesses; a Thoma Bravo buyout is pending. Accredited Onex-owned program manager whose A- rated insurers issue admitted and surplus lines policies for MGAs in the U.S., UK and Europe; commercial auto leads. American Coastal Insurance St. Petersburg insurer of Florida condo associations, HOAs, apartment complexes and assisted living facilities, sold only through two MGAs since 2007. AmTrust Financial New York-based, privately held insurer; the No. 3 U.S. workers' comp writer, also selling BOPs, packages, E&S and MGA programs through agents. Applied Underwriters Omaha-based, founder-owned insurer known for its EquityComp and SolutionOne comp programs, now writing specialty liability, auto and aviation coverage. Arch Insurance U.S. arm of Bermuda-based Arch Capital; specialty, E&S and (since buying Allianz's book in 2024) middle market P&C through brokers, MGAs and programs.

Related industries

Insurance agency E&O and business insurance What agencies and brokers need: agency E&O for failure-to-procure claims, cyber and the NAIC data security law, crime for premium funds, EPLI and a BOP.