Managing general agents (MGAs) will need to prioritize underwriting profitability and consistent portfolio performance over insurance premium volume as competition intensifies, according to Claudia Carnevale, Head of North America Programs at Munich Re Specialty.
The US MGA market has expanded rapidly over the past decade. Direct premiums reached $109 bn in 2025, representing 90% growth since 2020 and five consecutive years of double-digit increases.
- US MGA direct insurance premiums reached $109 bn in 2025, increasing 90% since 2020 after five consecutive years of double-digit growth.
- Munich Re Specialty expects underwriting discipline, specialized expertise and consistent portfolio profitability to become increasingly important as competition intensifies.
- Carriers and reinsurers are placing greater emphasis on transparent portfolio data, advanced analytics and strategic partnerships when evaluating MGA relationships.
Carnevale expects the next phase of market development to favor MGAs with disciplined underwriting, specialized capabilities and reliable performance data.
The strongest MGAs will maintain underwriting discipline, reinforcing confidence in how they assess risk, price policies, and make decisions.
Claudia Carnevale, Head of North America Programs at Munich Re Specialty
She also expects long-term portfolio performance to become a more important measure of success than short-term premium expansion.
Specialized MGAs gain an advantage in complex risks
Carnevale identifies specialization as one of the strongest competitive advantages available to MGAs and their carrier partners. MGAs concentrating on specific risk classes can develop detailed market knowledge, improve risk selection and offer more differentiated products.
Specialization creates a defensible market position and meaningful barriers to entry. That kind of deep expertise enables more accurate risk assessment and stronger underwriting outcomes.
According to Carnevale, MGAs with deep expertise in a limited number of segments can outperform competitors attempting to serve a broader range of risks.
Specialization also allows MGAs to deliver more relevant underwriting insights and solutions to brokers and insureds operating in complex risk environments.
Global insurtech market is entering a new phase as managing general agents (MGAs) move away from aggressive expansion and place greater emphasis on underwriting profitability, insurance expertise and sustainable portfolio performance.
Across North America, a group of technology-focused MGAs is combining automation and artificial intelligence with underwriting capacity provided by insurers and reinsurers. Their development reflects a change in how technology is used within insurance distribution and risk selection.
InsurTech MGAs shift from rapid growth to AI and underwriting profitability, Munich Re noted.
Underwriting profitability takes priority over premium growth
More competitive market conditions can expose weaknesses in pricing, risk selection and portfolio management (see U.S. P&C Insurance MGAs list).
Carnevale said disciplined MGAs need to understand their profitability thresholds and reject business that cannot be priced adequately. “Disciplined MGAs understand where profitability begins and ends and are willing to walk away from underpriced business,” she said.
Consistent underwriting decisions and specialized market data can help MGAs maintain portfolio performance as pricing pressure increases.
The ability to demonstrate sustainable underwriting results will also influence how carriers and reinsurers evaluate potential partners.
Data and analytics shape carrier and MGA relationships
MGAs are continuing to invest in technology to improve operational efficiency, risk analysis and reporting.
For capacity providers, timely and accurate portfolio information supports underwriting oversight and informed decisions about capital deployment.
Carnevale said transparency regarding profitability, performance trends and emerging exposures is particularly important for maintaining carrier and reinsurance relationships.
“MGAs that use advanced analytics, and can clearly articulate portfolio performance and profitability, are often viewed as preferred partners,” she said.
Consistent reporting also allows capacity providers to assess whether underwriting decisions follow established risk selection and pricing standards.
Strategic partnerships extend beyond insurance capacity
Carnevale expects MGA relationships with insurers and reinsurers to place greater emphasis on shared expertise and long-term business objectives.
As capacity providers become more selective, established relationships supported by transparent performance reporting could offer a competitive advantage.
“MGAs increasingly value carrier and reinsurance partners who don’t just deploy capacity, but actively help support growth, innovation and market expansion,” she said.
Such partnerships can combine underwriting capacity with market knowledge, product development and support for expansion into new segments.
MGA market outlook for the next three to five years
Over the next three to five years, Carnevale expects MGAs to increase investment in data infrastructure, analytics and reporting capabilities.
Product innovation and expansion into adjacent offerings are also likely to remain priorities. I expect the priorities for MGAs to be centered on expanding product innovation and adjacent offerings to create growth.
For MGA executives, Carnevale’s principal recommendation is to manage capital carefully and invest in capabilities that support consistent underwriting performance.
“Be thoughtful stewards of capital. Invest in the expertise, data, and transparency that create lasting differentiation and scalability, and continue building strong, long-term strategic partnerships,” she said.
