Why fronting carriers are powering MGA growth - and what that means for talent
The European MGA market is booming - and fronting carriers are at the heart of that growth. By enabling MGAs to scale without the need for local licenses and connecting them directly with reinsurers, fronting carriers are reshaping how underwriting capacity is accessed across Europe.
According to a report by Howden Re, the European MGA market grew at a 23% compound annual growth rate in the five years leading up to 2024 - outpacing both the US and global benchmarks.
The rise of fronting in Europe
Fronting carriers are licensed insurers that issue policies on behalf of MGAs, then cede all or most of the risk and premium to third-party reinsurers. The MGA sources, underwrites and prices the business, while the fronter uses its authorisation to ensure regulatory compliance.
An estimated 20% of MGAs in Europe and the UK now use fronting arrangements - a figure that’s steadily rising. These carriers are valuable growth drivers because they make it easier for MGAs to access underwriting capacity and expand into new markets.
How hybrid fronting models are changing the game
The nature of fronting has evolved. Many carriers are now well-capitalised businesses with A- or stronger ratings, led by respected experts from the traditional (re)insurance market.
More recently, hybrid fronting carriers have emerged. These retain a small portion of the risk, often between 10-30%, to ensure greater alignment with their cedant partners. This trend is illustrated by Bridgehaven Europe Holdings, which on 3 December 2025 completed its acquisition of SureStone Insurance DAC. The deal gives the UK‑based hybrid carrier a licensed EU platform to scale MGA partnerships, connecting them with reinsurance capacity under a single model.
Why MGAs choose fronting over traditional carriers
Tying up with a fronting carrier rather than a traditional insurer is not for every MGA. One drawback may be a lack of oversight, stemming from the often-hands-off relationship between the fronter and the reinsurer. MGAs using fronters may also miss out on a sharing of expertise to build a sustainably profitable book, as well as the confidence that their partners are in it for the long term. That said, a fronter offers certain distinct advantages over a traditional capacity provider.
Access to global capital: Reinsurers often have greater appetite than traditional insurers, so working through fronters with ceding relationships with reinsurers allows MGAs to underwrite more policies.
Speed to market: Fronting carriers help MGAs launch new products and expand into new territories or niche markets faster, without lengthy internal governance processes or legacy systems to hold them back.
Regulatory flexibility: In fragmented European markets, fronts meet specific local requirements while enabling cross-border growth through their EU authorisation.
Strategic alignment: MGAs can partner with a fronting carrier whose risk appetite matches their own in the confidence the fronter is highly unlikely to start competing by underwriting on its own behalf.
Cost efficiency: The elimination of duplication between MGA and traditional carriers in areas such as compliance, alongside direct access to reinsurance capacity, often cuts the cost of doing business.
This in turn can make MGAs more attractive to investors.
What to look for in a fronting partner – and what to avoid
MGAs should seek fronting partners with a stable, long-term approach to capacity and strong financials, ideally backed by ratings from agencies like A.M. Best.
The ideal partner will have deep expertise in the MGA’s specific lines of business, along with robust underwriting, pricing, and data analysis capabilities. Transparency is key - MGAs should expect clear reporting and well-defined processes for claims and administrative functions.
Technology maturity is also critical. Partners who invest in automation and streamlined reporting systems reduce operational risk and improve efficiency. Conversely, those relying on outdated platforms and manual processes may introduce vulnerabilities, from data breaches to compliance failures.
MGAs should be cautious of fronting carriers that rely heavily on unproven reinsurers or bear little to no risk themselves. If those reinsurers face financial distress, the fronting carrier could be left with significant liabilities - putting the MGA at risk.
If a fronting carrier is taking on a portion of risk, it must also have a robust understanding of reinsurance. This is especially important for long-tail classes and structured treaties, where credit risk can be significant.
Regulatory compliance is non-negotiable. Fronts must be authorised in the jurisdictions where the MGA operates. They should also avoid using soft-rated reinsurers that may not fully fund a programme’s loss cap.
Finally, adequate insurance coverage matters: fronting carriers should carry appropriate Errors & Omissions and Fidelity Bond coverage with sufficient limits.
Cultural fit matters too. Shared values and strategic alignment can make the difference between a transactional relationship and a true partnership.
What fronters should look for in an MGA
In such a buoyant market, the risks run both ways and fronters need to select their MGA partner every bit as carefully.
Some MGAs have joined the European gold rush with untested teams. Fronters should look for MGAs staffed by genuine specialists, with a record of profitable underwriting. An MGA business model that prioritises growth at all costs will quickly unravel. This can damage a fronter’s reputation in the market, make it hard to find cedant partners in the future and create regulatory and governance risks.
Robust operational infrastructure and clear lines of reporting are every bit as important for a fronter in their choice of MGA, as vice versa, given the number of parties potentially involved in the distribution chain.
In addition, MGAs deploying advanced analytics will generally be better placed to underwrite niche and emerging risk profitably than those which haven’t embedded sophisticated technology into their business models.
The Talent Equation
As demand grows for underwriting expertise, analytical capability, and operational leadership across the MGA and fronting space, one priority stands above all: ensuring top talent lands in organisations that empower them to thrive.
Retention only happens when the environment supports it. This is where 20Twenty Search adds value - sourcing, assessing, and aligning talent with clients who not only need their skills but cultivate the culture, leadership, and opportunity that keep them engaged. We don’t just connect clients with high-performing specialists; we ensure those specialists are positioned where their impact is lasting.
Capacity strategy, regulatory navigation, data integration, and international expansion all matter, but none sustain momentum without people who can execute at pace, make informed decisions, and balance commercial and technical understanding.
Hiring talent is not the finish line. Aligning people with the right environment determines whether growth is temporary or enduring.
Where 20Twenty Search Fits
20Twenty partners with a select number of MGAs and fronting carriers to identify leaders, underwriters, analysts, and operational specialists who drive modern growth, placing them with organisations that empower their success.
With over 35 years of combined specialty market experience, our placements span P&C and Specialty markets across the UK, Europe, North America, and Bermuda
Organisations that thrive over time don’t just hire talent; they provide the environment where top performers can grow, lead, and deliver lasting impact.
Let’s talk. 20Twenty Search is ready to support your next phase of talent strategy.
