Managing General Agent (MGA)

What Does Managing General Agent (MGA) Mean?

A Managing General Agent (MGA) is an entity that acts as a broker, or agent, and is given underwriting power on behalf of an insurer.

Insuranceopedia Explains Managing General Agent (MGA)

Insurance brokers tend to act on behalf of the policyholder. However, an MGA acts on behalf of insurance companies.

Therefore, MGAs perform activities which are usually only handled by insurers, such as; underwriting, pricing and settling claims. MGAs are beneficial to insurance companies because they have skills, or expertise, that are not always available internally within the insurance company.