Navigating Workforce and AI Challenges for MGAs in Insurance
A recent study by Vertafore highlights the increasing pressure on Managing General Agents (MGAs) to achieve operational efficiency due to rising reinsurance costs, talent shortages, and elevated expectations from carriers and agents. The report, titled "Securing the MGA Future: The 2026 Workforce and Technology Report," gathered insights from around 200 MGA leaders, managers, and frontline professionals across the United States. Key findings reveal that 58% of respondents are actively recruiting new talent, yet 53% face challenges in attracting suitable candidates, with 16% describing the situation as "extremely challenging."
Emily McGinn, General Manager of MGA and Wholesale at Vertafore, emphasized the importance of operational excellence as a growth strategy. "The next generation of leading MGAs won't be defined only by how fast they grow premiums, but also by how well they run their business," she stated in a press release.
Addressing Workforce Challenges
The study also addresses the aging insurance workforce, drawing from U.S. Bureau of Labor Statistics data. The number of insurance professionals aged 55 or older rose significantly from 2010 to 2020, and it is anticipated that half of the workforce will retire within the next decade, creating over 400,000 vacancies. As a result, succession planning and knowledge transfer have become strategic priorities for MGAs.
Embracing AI and Data for Growth
The report indicates that MGAs are focusing on integrating advanced talent strategies, incorporating artificial intelligence (AI) to facilitate sustainable growth, and optimizing data and core systems. Data is increasingly used beyond transactional purposes; 72% of respondents utilize data for risk analysis, 58% for pricing development, and 62% to identify new market opportunities.
Regarding AI integration, MGAs have been cautiously evaluating its applications in underwriting, claims, and customer service. Interest in AI technology is shifting from exploration to implementation, with 21% of respondents currently employing AI and 50% planning to adopt it soon. The primary AI use cases involve automating tasks such as document management, providing underwriting decision support, and data analysis.
Vertafore's findings underscore the evolving landscape for MGAs, who must adapt to these trends to maintain competitive advantage and meet future operational demands.