Glossary
MGA (managing general agent)
An MGA, or managing general agent, is an intermediary that a carrier grants underwriting authority: the power to price, quote, and often bind policies on the carrier's paper. Retail agencies use MGAs to reach niche or hard-to-place risks their direct carrier appointments will not write.
MGA vs wholesale broker
Both sit between the retail agent and the carrier. The difference is authority. A wholesale broker shops the risk to carriers and negotiates on your behalf. An MGA underwrites the risk itself under a delegated authority agreement with the carrier, often including binding authority and sometimes claims handling.
In practice the labels blur, because many firms operate both ways: brokering some risks, underwriting others under their programs. What matters on any given account is who is actually making the underwriting decision.
When a retail agency uses one
The usual reasons: the class is out of appetite for your direct markets, the risk needs the surplus lines market, or the MGA runs a program built for that niche, like specific contractor classes or trucking. Program business is where MGAs shine, because the underwriting is specialized and the forms are tuned to the class.
The trade-off is the extra link in the chain. Commission is shared with the MGA, and service requests route through the MGA rather than straight to the carrier, which adds a hop to endorsements, certificates, and claims questions.
Common questions
Does the client know an MGA is involved?
The policy is issued on the carrier's paper and the client's relationship stays with the retail agent, so many insureds never notice. The MGA's name may appear on documents as the program administrator.
Is an MGA the same as an MGU?
Close. MGU stands for managing general underwriter, and usage varies by firm and market. Both describe delegated underwriting authority. The distinction people usually draw is that an MGU focuses on underwriting while an MGA may also handle distribution and other functions.
Part of the Relay insurance operations glossary. Updated 2026-07-11. See how we source content.
Get started
Get on the Summer ’26 list.
Spring ’26 is full. Get on the Summer ’26 list and we will be in touch as spots open.