In 2024, managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) in the United States generated $89.9 billion in premiums, reflecting a 15% year-over-year increase. This marks the fourth consecutive year of double-digit premium growth, according to AM Best’s newly released Best’s Market Segment Report titled “MGA Premiums Show Double-Digit Growth for a Fourth Consecutive Year.”
Increase in Reporting MGAs
The number of MGAs meeting the National Association of Insurance Commissioners (NAIC) threshold for individual premium reporting rose to over 700 in 2024, approximately 100 more than in the previous year. NAIC regulations require that only MGAs generating premiums above 5% of a risk-bearing entity’s policyholder surplus must be reported individually. Market research indicates that more than 1,000 MGAs are currently active in the U.S. market, with the growth partly driven by new entrants focused on niche sectors where specialized underwriting expertise is in demand.
Specialty Lines Drive Momentum
Despite some pricing moderation in specific lines, such as workers’ compensation, professional liability (particularly directors and officers and employment practices liability), and cyber liability, MGAs writing specialty commercial lines have continued to gain momentum. David Blades, Associate Director of Industry Research and Analytics at AM Best, noted that although average account pricing has cooled in some areas, MGA premium growth has persisted. However, future growth rates may face downward pressure if pricing continues to ease across these lines.
Larger MGA Footprint
The number of MGAs with $500 million or more in direct premiums written (DPW) increased to 19 in 2024, up from 12 the year before. Additionally, six MGAs surpassed $1 billion in DPW, twice as many as in 2023. This trend suggests consolidation of market power among higher-volume MGAs.
Shift Toward Non-Exclusive Relationships
Non-exclusive MGA relationships accounted for an estimated 57% of U.S. property/casualty direct premiums written in 2024, compared to 33% in 2017. This shift indicates a growing preference among insurers for diversified distribution models. Dawn Walker, Associate Director of Industry Relation (DUAE) at AM Best, explained that non-exclusive arrangements offer insurers greater portfolio flexibility. They allow carriers to respond more nimbly to changing loss trends, pricing environments, and reinsurance availability, and make it easier to exit underperforming segments.
Introduction of Performance Assessments
In response to continued DUAE growth, AM Best introduced the Best’s Performance Assessment (PA) in 2022. The PA offers an independent evaluation of a DUAE’s operational effectiveness and its capacity to perform on behalf of insurance partners. The report highlights how DUAEs have invested strategically in technology and talent to support expansion in the specialty commercial insurance market.
AM Best is a global credit rating agency and data analytics provider specializing in the insurance sector, with operations in over 100 countries. For more details, visit www.ambest.com.
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