Significant Growth in Managing General Agents (MGAs)
Industry professionals are observing significant growth in managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs). AM Best's report reveals that these entities reported $108.7 billion in direct premiums for 2025, marking a 17.8% increase over the previous year's $92.3 billion. This growth outpaces the broader U.S. property and casualty market, which saw a modest 5% rise.
The MGA segment has enjoyed five consecutive years of double-digit growth, driven by demand for specialty coverage, niche underwriting, and technological investments. However, AM Best notes a shift towards more disciplined growth, as insurers become more selective about capacity allocations, indicating a move away from unchecked expansion.
In 2025, around 800 unique MGAs appeared in NAIC annual financial statements, indicating an increase from the previous year. Notable contributors to market concentration include Rain and Hail LLC and J.H. Ferguson & Associates LLC, leading with direct premiums of $4 billion and $3.9 billion, respectively.
AM Best maintains a stable outlook on the global DUAE market, crediting its resilience to specialized underwriting skills and potential for strategic alliances. However, carriers and reinsurers exhibit cautious optimism, as they refine partnerships and prioritize the quality of underwriting.
The excess and surplus lines market, a traditional driver for MGA growth, is showing signs of deceleration. David Blades, associate director at AM Best, highlights an industry focus on "increased oversight," with insurers seeking sustainable rather than rapid market capture.
Investment dynamics in the DUAE sector favor strategic partnerships over full acquisitions. This approach aligns with carriers' objectives to allocate capital judiciously. Partnerships and panel arrangements diversify capacity sourcing, although they introduce operational challenges due to evolving reinsurance contracts with shorter durations and higher data demands.
AM Best reports an expanded scope of authority granted to MGAs, with over 75% of reviewed contracts in 2025 involving underwriting authority. Non-exclusive contracts now significantly impact MGA-produced premiums, providing carriers flexibility in managing underperformance.
As the MGA market matures, entities with established expertise are well-positioned to succeed, while newer entrants may face hurdles in this more selective landscape. Industry experts emphasize that disciplined portfolio management and technological adoption are vital for sustained success. This report, featuring insights from industry analyst Helen Andersen, underscores the necessity for MGAs to adapt and innovate amidst evolving market conditions. Access the full report through AM Best for a comprehensive overview of current trends and future market directions.