How MGAs won the battle for talent and capacity
MGAs have evolved significantly over the past five years, moving from niche intermediaries to strategic vehicles for underwriting innovation, market access, and capital efficiency.
When I first entered the insurance recruitment market in 2010 and began moving underwriting leaders into MGAs, it was often a difficult proposition. At the time, the MGA model was still seen as somewhat of a risk, especially for those enjoying the stability of well-capitalised carriers or established Lloyd’s syndicates. The idea of leaving a known quantity with a strong balance sheet to join a more entrepreneurial, leaner outfit, often reliant on just one or two capacity providers, felt like a step into the unknown for many.
Technology was frequently outsourced or built by third parties, and MGAs lacked the robust infrastructure that underwriters had grown accustomed to within larger organisations. For many, it was perceived as a niche move, potentially pigeonholing their career in a specific class or distribution model. There was a sense that joining an MGA meant narrowing one's future options, and that if things didn’t work out, it might be difficult to transition back into a carrier environment.
Moreover, traditional carriers offered operational support, diversified portfolios, brand equity, and internal mobility, all of which were comforting to those who valued long-term career progression and internal networks. In contrast, MGAs were seen as secondary choices, more suited to those nearing the end of their underwriting journey, or those unable to find a pathway within the traditional market.
However, as the MGA model has evolved, particularly in terms of infrastructure, capital partnerships, and leadership sophistication, the narrative has shifted. In the early days, persuading underwriting talent to leave the security of a carrier or Lloyd’s syndicate was about helping them see the long-term strategic opportunity, rather than offering a like-for-like alternative. MGAs were often viewed as peripheral, operating outside the core of the insurance market, reliant on limited capacity and without the broader support systems that carriers provided.
Fast forward to today, and that perception has undergone an almost 180-degree-transformation. MGAs are now seen as strategic growth platforms for both carriers and reinsurers. What was once considered a tactical tool is now a central component of the specialty insurance value chain. MGAs allow carriers to scale underwriting operations, diversify portfolios, access new or underserved markets, and deploy capacity more efficiently; all without taking on the fixed costs of traditional insurance infrastructure.
The capital landscape has also matured. Where once MGAs depended heavily on one or two sources, capacity is now drawn from a broader ecosystem, including the ILS (Insurance-Linked Securities) market, multi-carrier structures, digital assets as collateral, and private equity. This diversification has made MGAs more resilient and more attractive to investors and capacity providers alike.
Technology has played a transformative role as well. Today’s tech-enabled MGAs leverage proprietary data, AI, and digitised distribution channels to deliver underwriting insight and market responsiveness at a pace legacy systems struggle to match. This level of innovation provides a genuine competitive edge in both speed and accuracy.
That’s not to say the every MGA is entirely invulnerable. One common risk, particularly among early-stage or smaller MGAs, is overreliance on one or two capacity providers. In the formative years, achieving scale and credibility is critical, not just to protect against early underwriting volatility, but to ensure long-term capacity partnerships remain viable and aligned. Striking the right balance between aggressive growth and disciplined underwriting is essential, requiring strong governance, transparency, and mutual trust between the MGA and its capital partners.
Talent dependency is another challenge, especially when the success of the MGA hinges on one or two key underwriting leaders. This creates potential risk concentration in terms of knowledge, relationships, and execution capability.
From a claims perspective, many MGAs still outsource claims handling to carriers or third-party administrators (TPAs), which can dilute control over customer experience, loss ratio performance, and brand reputation. When MGAs lack real-time, granular claims data, they also miss opportunities to identify emerging loss trends, reduce leakage, or feed insights back into underwriting and pricing models — a critical feedback loop for long-term performance.
However, overall, the positive changes that have swept the sector have brought MGAs in from the cold and into the hot seat of capacity allocation. In terms as talent, they are no longer viewed as a career risk but as a destination for top-tier individuals, attracting not just leading underwriters but also specialists across operations, data, capital markets, and technology.
At 20Twenty we have a combined 35-year history in the commercial and specialty insurance market and extensive experience in placing talented individuals in MGAs that address both established and highly specialist or emerging risks, ranging from cyber, renewable energy, extreme weather related risks, parametric secondary perils such as hail, drought, heat waves, climate litigation, pandemic and mental health related risk to name a few. We have also been actively involved in capacity-led projects, acting as strategic facilitators for carriers looking to embed insurance products through digital distributors, platforms, and technology-driven partners.
With our global network of connections and experts across Europe and North America we can unlock the solutions to the needs of your growing business and look forward to discussing how we can help.
