Managing General Agent: Difference between revisions
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Anything outside of the limits either has to be refused or referred to the insurer. | Anything outside of the limits either has to be refused or referred to the insurer. | ||
An MGA is usually remunerated via a commission based on the gross premium, however this is often adjusted based on loss ratios. | |||
Latest revision as of 11:03, 23 April 2025
A Managing General Agent (MGA) is an entity which has authority to perform actions on behalf of an insurer. These may include:
- Underwriting new business and renewals
- Policy administration
- Opening, administering and settling claims
Any authority will be limited. Common restrictions include:
- Types of business permitted to underwrite
- Maximum exposure levels
- Maximum claim limits
Anything outside of the limits either has to be refused or referred to the insurer.
An MGA is usually remunerated via a commission based on the gross premium, however this is often adjusted based on loss ratios.