MGAs: the new Bermuda start-up model
As carriers look for specialist expertise and new distribution, delegated authority remains a growth engine.
Managing general agents (MGAs) have become an increasingly important part of the insurance value chain, combining specialist underwriting expertise with delegated authority from carrier partners. The model enables insurers to access niche markets, specialist talent and new distribution channels without building those capabilities in house.
The MGA model continues to attract support from carriers seeking specialist underwriting expertise, distribution reach and access to new lines of business.
The rise of MGAs, in terms of their size and scope but also the many new ventures being launched, can be seen in Europe and North America. But a number of notable ventures have also been launched in Bermuda. Industry legend Brian Duperreault has even described MGAs as the “new Bermuda start-up”.
Survey data from the Clyde & Co and MGAA MGA opinion report 2025, published July 2025, (as depicted in visuals 3-7) suggests that, despite ongoing economic and regulatory challenges, market participants remain broadly optimistic about the sector’s growth prospects.
One indication of the model’s maturity is the composition of the world’s largest MGA groups. As reported by Insuramore, independent businesses account for more than three quarters of the top 500 MGA, MGU and cover-holder groups by revenue, while insurer-owned entities represent a relatively small proportion of the market. The figures underline the continued importance of entrepreneurial and specialist operators within the delegated authority landscape.
Geographically, the market remains concentrated in the Americas and Caribbean, including Bermuda, which account for almost two thirds of the world’s largest MGA groups. Europe, Africa and the Middle East represent nearly one third of the total, while Asia-Pacific and Australasia account for less than 7%, highlighting the differing levels of MGA market development across regions.
Carrier appetite for MGA partnerships also appears strong. A combined 57% of carriers expected their capital allocation to MGAs to increase in 2025 and 2026, compared with 15% anticipating a reduction. The data suggests that delegated authority models remain an important route to growth for insurers seeking exposure to specialist or underserved markets.
When considering new business opportunities, specialty lines emerged as the most frequently cited area of interest among carriers planning to provide capacity to MGA partners. Financial lines, property and cyber also featured prominently, reflecting continued demand for specialist underwriting expertise in complex and evolving risk classes.
Despite these opportunities, several challenges remain. More than half of respondents believe the current economic climate will negatively impact their business, while 46% of MGAs identified regulation as the primary barrier to launching new businesses or entering new markets. Access to capital was also frequently cited by both MGAs and carriers, suggesting that growth ambitions continue to be shaped by funding and regulatory considerations.
The importance of regulation is also reflected in respondents’ expectations for legal and regulatory scrutiny during the 2025/2026 period. Respondents anticipated the greatest increase in legal and regulatory scrutiny in the UK, where 71% expect oversight to intensify, followed by Europe at 57%. While expectations are lower in North America, including Bermuda, more than one third of respondents still anticipate heightened scrutiny. The findings suggest that compliance and governance will remain key considerations for MGA operators seeking to expand across multiple jurisdictions.
Operational effectiveness remains another area of focus. While 58% of MGAs reported improvements in the speed of communication within the claims management process, 60% of carriers said they had seen no such advancement. The divergence highlights a potential disconnect between delegated underwriting businesses and their capacity providers regarding progress in claims handling. More broadly, 77% of MGAs believe the claims process requires improvement, indicating that claims management remains a significant area of attention across the sector.
Technology is expected to play an increasingly important role in addressing some of these challenges. Nearly two thirds of MGA respondents believe AI will primarily support existing processes and enhance decision-making, rather than fundamentally replace current operating models. This suggests the sector views AI as an enabler of underwriting, operational and compliance functions, rather than a substitute for specialist expertise.
Taken together, the findings point to a sector that continues to evolve and attract investment, while balancing the demands of regulation, operational efficiency and technological change. As carriers seek new sources of growth and specialist expertise, the MGA model appears set to remain an increasingly important component of the insurance landscape.
*Figures displayed are the latest available at the time of press.
For more news on Bermuda Risk Review 2026, click here.
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