Managing General Agent

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.