A Managing General Agent (MGA) has an important role in the relationship between insurance wholesalers and consumers. The MGA takes on an intermediary role, providing the operational service and delivery of the insurance carrier’s products to agents and clients. Carriers often enter into MGA arrangements as a way to meet industry challenges such as heightened competition and cost control. Working with an MGA can provide value to both carriers and individual agents through added expertise, access to various insurance markets and a quicker and more efficient underwriting process.
There are two main business models for MGAs: the Diversified MGA, which offers independent agents access to many carriers with more generalized coverage; and the Specialized MGA – such as a coastal insurance company – which enters the market with specialty coverages to reach a niche insurance segment.
When working with a specialized MGA, independent agents can expect certain key services:
- Access. A specialized MGA can leverage their relationships with carriers to assist independent agents in gaining access to market carriers that might be difficult for them to access on their own.
- Faster quote turnaround. MGAs often utilize highly effective technology products that allow them to speed up the quote process. In this current digital age where clients are looking for instant-gratification, the efficiency and responsiveness of an MGA can give independents the edge over their competition.
- Quick policy issuance. Most specialized MGAs have the authority to underwrite policies without having to make referrals to the carrier. When a referral is needed, it adds more time to the process, so having the ability to remove that step makes MGAs a valuable asset to independent agents.
- Sustained independence. Partnering with an MGA adds another layer of expertise that allows agents to offer superior customer service to their clients. Independent agents can operate with the efficiency of a big agency, while maintaining the flexibility that they are looking for, such as the independence of choosing the providers they want to work with.
- Agility. MGAs are often extremely effective at communication, making them more equipped to respond to customers than both carriers or independent agents. This also typically better positions them to listen to the changing needs of clients and adapt to them more quickly.
Specialized MGAs can help agents flourish in niche markets because they are able to harness their insider knowledge, trust from carriers and efficient technology to deliver products quickly and efficiently to the target customers.
About Wilmington Insurance Agency
Wilmington Insurance Agency delivers comprehensive coastal property solutions. We are a Managing General Agency and provide independent insurance agents with property and liability insurance solutions for residents and businesses primarily in Maryland and Virginia. We work alongside our sister company, Wilmington Insurance Company, established in 1996 and providing Property & Casualty commercial lines business, homeowners, and condominium insurance in the state of Delaware. To learn more about how we can help you to expand your book of business in the coastal market, contact us at (302) 231-2800.