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.
Review the program's service process and compensation terms. Who handles policy changes, who can approve a bind, and who answers a claims question? Those answers depend on the delegated arrangement. A clear contact and authority map prevents a request being passed between organizations.
Confirm the decision owner
Before promising a turnaround, ask whether the MGA can approve this risk within its delegated authority or needs a carrier referral. Record who approves the bind and where service requests go after issuance.
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.
Sources
Part of the Relay insurance operations glossary. Updated 2026-09-07. See how we source content.
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